CoreWeave, Nebius shares surge after blowout Q2 earnings

Shares of CoreWeave and Nebius jumped on Thursday after both companies reported blowout second-quarter earnings, signaling accelerating demand for high-performance computing infrastructure in the artificial intelligence sector.

CoreWeave, a U.S.-based AI cloud provider, posted revenue of $200 million for Q2, up 150% year-over-year, while Nebius, a Russian cloud services firm, reported a 180% revenue increase to $120 million over the same period. Analysts attributed the outperformance to surging demand for AI-driven workloads, including large language model training and inference services.

The earnings releases triggered a broad rally in neocloud stocks, with CoreWeave’s shares rising 12% and Nebius’s shares climbing 18% in early trading. The gains extended to other players in the sector, as investors bet on sustained growth in AI infrastructure spending despite broader market volatility.

"The Q2 results validate the long-term thesis for AI cloud adoption," said a senior analyst at a major investment bank. "Enterprises are prioritizing high-performance computing to support generative AI applications, and these companies are well-positioned to capitalize."

Nebius, which recently expanded its data center footprint in Europe and Asia, highlighted a 250% increase in AI-related revenue, underscoring the global appetite for scalable cloud solutions. CoreWeave, meanwhile, reported a net income of $45 million, a stark turnaround from a $15 million loss in the same period last year.

The sector-wide optimism comes amid broader concerns about AI spending sustainability, with some investors questioning whether growth in the space is overstated. However, the strong earnings reports from CoreWeave and Nebius appear to have temporarily quelled those doubts.

Analysts expect the neocloud rally to continue in the near term, though they caution that valuation levels remain elevated. CoreWeave’s forward price-to-sales ratio now stands at 25x, while Nebius trades at 30x, well above historical averages for cloud infrastructure providers.

For now, the market’s focus remains on whether other neocloud companies can replicate CoreWeave and Nebius’s performance in their upcoming earnings reports.