CoreWeave Stock Skyrockets on Strong Q2 Earnings, Analysts Praise Nvidia GPU Lifespan
CoreWeave's stock surged over 18% in premarket trading after the company reported strong second-quarter results. The AI cloud provider exceeded analysts' expectations, with revenue more than doubling from last year to $2.58 billion.
The company also ended the quarter with a massive $104 billion revenue backlog, up threefold year-over-year. This figure does not include over $25 billion in additional customer commitments secured early in the third quarter.
Analyst Shay Boloor of the Futurum Group highlighted CoreWeave's improving quality of contracted revenue, with about $42 billion expected to convert within 24 months, up from roughly $15 billion a year ago. This gives the company greater visibility into near-term revenue.
Boloor also praised the contract signed by CoreWeave, which extends an A100 contract through 2029, saying Nvidia GPUs can 'still generate revenue nearly a decade later.'