Nasdaq-100 futures rose nearly 2% on Wednesday morning as CoreWeave's third-quarter results lifted AI-linked stocks in U.S. premarket trading. Shares of major chip and memory companies gained 4% to 8%, offering a reprieve after a month of selling driven by worries about infrastructure costs and funding.
CoreWeave reported revenue of $3.66 billion, an increase of 168% from a year earlier, and lifted its 2026 revenue forecast to between $13 billion and $13.3 billion, according to Asianet Newsable. Originally reported by Asianet Newsable.
Customer payments ease funding worries
The AI cloud provider expects about $9 billion in customer deposits and prepayments during the next three months. It plans to fund its operations primarily through financing backed by contracts, rather than issuing unsecured debt at current yields.
That approach addresses a concern behind the recent selloff: whether AI companies can finance infrastructure investment that exceeds their free cash flow. Investors have also questioned whether future demand can justify the scale of spending.
Semiconductor gains spread across AI suppliers
Nvidia, AMD, Broadcom, Micron Technology and SanDisk were among the stocks advancing 4% to 8% before the market opened. CoreWeave, Marvell Technology, Coherent, Lumentum and Seagate Technology also gained.
The iShares Semiconductor ETF rose 5% in premarket trading. The rebound followed a roughly 20% decline in the Philadelphia Semiconductor Index over the past month.
Berenberg strategist Ulrich Urbahn said evidence of demand, rather than sentiment alone, was supporting the recovery. He said investors were rebuilding positions after valuations had fallen considerably.
Analysts see value, but constraints remain
Goldman Sachs analyst James Schneider described AI stocks as "clearly in oversold territory" and identified Nvidia, Broadcom and AMD as buying opportunities. He viewed Nvidia and Broadcom's valuations as compelling, while seeing attractive growth potential at AMD despite a less compelling valuation.
Schneider nevertheless pointed to unresolved questions over funding capital expenditure and securing enough land, electricity and data center capacity to meet projected demand. Despite favorable risk-reward prospects in selected stocks, he cautioned that there may be few catalysts to sustain a rally before year-end.
Originally reported by Asianet Newsable.