Taking advantage while Nvidia is down, CoreWeave rally signals analyst to believe AI demand is accelerating
Landon Capital News
CoreWeave’s 16% rally on Wednesday could signal a broader reprieve for AI semiconductor stocks, with Lynx Equity Strategies analyst KC Rajkumar arguing that the company’s latest results undermine concerns about weakening infrastructure demand and mounting financial pressure.
In a note on the earnings report, Rajkumar highlighted the sharp increase in pricing for CoreWeave’s older-generation GPU infrastructure as particularly encouraging evidence that demand for AI computing capacity remains exceptionally strong.
CoreWeave disclosed that pricing for its Ampere and Hopper infrastructure increased 30%-50% quarter over quarter in the third quarter. Short-term contracts were commanding approximately $40 million per megawatt, more than twice the $20 million-$25 million range for longer-term agreements.
For Rajkumar, the pricing strength is a key indication that demand is not slowing as investors had feared. CoreWeave also reported improving operating leverage, with its operating margin rising from approximately 1% in the first quarter to 10% in the third quarter. Meanwhile, infrastructure coming online is largely sold out through 2027.
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