Shares of Wall Street’s favorite AI data center cloud capacity providers, CoreWeave (CRWV), Nebius (NBIS), and IREN Limited (IREN) are surging early Thursday after heavyweight chip maker Nvidia’s (NVDA) blockbuster third-quarter earnings results.
TipRanks Black Friday Sale
On Wednesday, Nvidia released its financial reports to wide applause from Wall Street and the White House, as its quarterly revenue rose 60% from a year ago to reach $57 billion — well above analysts’ expectations. Its earnings per share also climbed 60% year-over-year to $1.26, above the consensus on Wall Street.
AI Boom ‘Not a Bubble,’ Says Nvidia CEO
Commenting on the results, Jensen Huang, Nvidia’s chief executive, emphasized that the AI boom is “real” and “not a bubble”. The results and the CEO’s comment, which are fueling a rally in Asian tech stocks, have also helped to propel top AI neocloud providers out of their recent post-earnings rut.
As of 6:35 a.m. EST on Thursday, the stocks climbed thus:
- CoreWeave’s (CRWV) shares, which have plunged about 21% over the past five days, rose about 8% to $80.70 per share.
- Nebius (NBIS), which shed over 11% of its value in the last five days, climbed about 7% to $101.36 per share.
- IREN (IREN), which has dropped over 22% in the last five days, similarly rose about 8% to $49.24 per share.
Why Did CoreWeave, Nebius, and IREN Plunge?
The rise in CoreWeave’s shares comes as Wall Street remains divided on the future direction of the New Jersey-based company. The data center operator had attracted price cuts after lowering its full-year revenue forecast due to a delay from a third-party partner. A report from The Verge also named CoreWeave as “the heart of the AI bubble.”
On its part, Amsterdam-based Nebius has failed to impress investors with its new $3 billion five-year contract with U.S. tech giant Meta Platforms (META). This came after the company, which builds large-scale cloud platforms and data centers optimized for artificial intelligence workloads, reported a net loss of $39.7 million despite growing its revenue by 355% from a year ago.
For Sydney-based IREN, some analysts have pointed to the “quite high” execution and financial risks that come with its recent $9.7 billion deal with Microsoft (MSFT). Unlike Nebius, IREN has managed to turn its loss to profit, reporting earnings per share of $1.07 in its first-quarter Fiscal Year 2026 results.
What Are the Best AI Stocks to Buy?
With Nvidia’s latest strong quarterly performance, investors might be interested in evaluating which AI stocks are worth buying. The TipRanks Stock Comparison tool provides guidance on which of them are worth investing in based on analysts’ assessments.
Read more about these neocloud stocks here.
Disclaimer & DisclosureReport an Issue
