CoreWeave shares rise on AI infrastructure demand

Shares of CoreWeave Inc. surged on Tuesday, extending gains driven by renewed investor interest in artificial intelligence (AI) infrastructure providers.

The company, which specializes in high-performance computing and AI workloads, saw its stock climb following reports of a stronger-than-expected revenue outlook for the current quarter. Analysts noted that CoreWeave’s expanded data center capacity in key U.S. markets had positioned it to capitalize on rising demand for AI-related cloud services.

Market participants attributed the rally to broader optimism around AI infrastructure stocks, which have benefited from increased enterprise adoption of generative AI tools. CoreWeave’s recent partnerships with major tech firms were also cited as a catalyst for the upward momentum.

The stock’s gains came amid a broader tech rally, with the Nasdaq Composite rising 0.8% on the day. CoreWeave’s shares were up 12% in midday trading, reversing a recent pullback that had followed a volatile earnings season for the sector.

Analysts at Wedbush maintained a bullish stance on CoreWeave, highlighting its niche focus on AI-optimized infrastructure as a key differentiator in a crowded cloud computing market. The firm reiterated its outperform rating and raised its price target by 15% to $50, citing accelerating AI adoption trends.

Investors will be closely watching CoreWeave’s next earnings report, scheduled for late August, for further insights into its growth trajectory and margin performance.