CoreWeave sparks AI cloud stock rally, lifts Nvidia as results ease bubble fears

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CoreWeave shares surged over 20% on Wednesday, sparking a rally in AI cloud stocks after strong revenue growth and a reduced borrowing plan eased fears of an AI bubble. The company's earnings lifted backer Nvidia by 2% following recent declines tied to CEO Jensen Huang's alleged affair with a Chinese businesswoman. Neoclouds like Nebius and Iren also rallied, as CoreWeave's credible financing plan addressed debt concerns. CoreWeave said cash flow from contracts would cover debt repayments and it would avoid unsecured debt markets. The rally added billions in market value, though analysts warned CoreWeave remains vulnerable to an AI capacity slowdown.


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