Nvidia, AMD and Intel shares jumped in Wednesday’s pre-market session as renewed enthusiasm for artificial intelligence spending outweighed concerns from stronger-than-expected US inflation data.
CoreWeave’s results revive AI momentum
Nvidia rose about 2.5%, AMD gained over 5%, and Intel advanced more than 4% in early trading after CoreWeave’s earnings release. The Nasdaq 100 futures also recorded a 1.4% increase during the morning snapshot.
This rebound followed Tuesday’s sharp sell-off, when Nvidia shares dropped roughly 5.5%. That decline was driven by market worries about rising interest rates and uncertainty linked to Nvidia CEO Jensen Huang.
CoreWeave, a cloud provider backed by Nvidia, posted third-quarter revenue of $3.66 billion, representing a 168% jump from the same period last year. The company raised its full-year sales outlook for 2026 to a range of $13 billion to $13.3 billion.
CoreWeave’s contracted revenue backlog reached $132.5 billion, up from about $104 billion at the end of June, while adjusted operating income stood at $379 million. The cloud company’s business relies on acquiring advanced computing hardware and leasing capacity to AI developers, so its performance offers an indicator for ongoing demand in AI infrastructure.
Jamie Hannah, deputy head of investments at VanEck, indicated that CoreWeave’s figures provided reassurance to investors who were looking for proof that AI infrastructure investment could maintain strong momentum.
As CoreWeave procures significant volumes of processors, networking equipment and memory, its results have implications for hardware suppliers across the sector.
Semiconductor stocks rally on AI optimism
Nvidia stands to benefit the most from CoreWeave’s optimistic forecast, as the company’s graphics processing units underpin much of CoreWeave’s AI infrastructure.
AMD is also set to capitalize on the rising demand for AI accelerators and server processors, while Intel maintains exposure through its own server chips and hardware solutions.
The market rally followed a volatile backdrop. Nvidia’s share price had previously slid after the market responded to an internal board review involving CEO Jensen Huang, which came alongside concerns about elevated inflation and high valuations for technology companies. Nvidia stated that it has no indication that confidential information or national security had been compromised.
Semiconductor markets in Asia reversed earlier losses as well, boosting related stocks in South Korea and Taiwan. The recovery points to a shift in sentiment, as traders weigh whether the previous market drop was driven by short-term funding fears or deeper concerns about real AI demand.
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Inflation pressures and financing risks
US consumer inflation rose 0.4% in October, surpassing forecasts of 0.3%. Core inflation increased by 0.3%, also above expectations. The stronger data pushed up anticipation for a Federal Reserve rate hike in December.
Jeff Schulze, head of economic and market strategy at Franklin Templeton Institute, stated that elevated bond yields and a stronger dollar would add pressure to risk-sensitive assets. This concern is particularly relevant to companies like CoreWeave, which rely heavily on debt to finance major infrastructure expansion projects.
CoreWeave’s net loss for the quarter widened to $709 million. Net interest expenses hit $846 million, while operating income reached $207 million. The company expects capital expenditure of $37 billion to $39 billion this year, signaling the costly nature of rapid AI build-outs.
Gil Luria, managing director at D.A. Davidson, observed that despite strong demand for computing resources, securing sufficient capital for growth remains a significant challenge for AI infrastructure providers.
