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

CoreWeave's stock surged 10% on Wednesday, sparking a rally in AI cloud stocks and lifting Nvidia, as strong revenue growth and a halt to borrowing eased fears of an AI bubble. The company raised its annual revenue forecast and said cash flow from existing contracts would cover debt repayments, avoiding unsecured debt markets after rising borrowing costs. CEO Michael Intrator said regulatory scrutiny could slow industry construction but not alter expansion plans. Bernstein analysts praised the quarter but warned CoreWeave would be hit hardest when AI capacity eases, citing SoftBank's $3.7 billion writedown on data center equipment. AI cloud stocks had lost 32% to 48% this year, while Nebius gained 60%.