Shares of AI cloud provider CoreWeave, Inc. jumped 18% on Wednesday after the company reported its second-quarter revenue doubled, driven by surging demand for AI computing power from major clients. The firm, which leases high-performance computing capacity for building and running artificial intelligence, posted revenue of $2.6 billion for the second quarter, a 112% increase from $1.2 billion in the same period of 2025.

The company expects third-quarter revenue to range between $3.4 billion and $3.6 billion. However, CoreWeave remains unprofitable. Results showed that operating expenses also more than doubled year-over-year in the quarter, slightly outpacing revenue growth. In pre-market trading, CoreWeave shares were last up 19.9%. As of Tuesday's close, the stock has risen 26% since the start of the year.

As of June 30, the company's backlog of revenue commitments reached $104 billion, excluding $25 billion in new customer commitments secured in the third quarter. "To put that in perspective, $25 billion is almost as much as our entire size a year ago, which gives you an idea of how strong demand for our products is and how fast we're growing," said Chief Executive Officer Michael Intrator. In the earnings release, Intrator noted that the company reached "a significant inflection point" during the quarter.

However, CoreWeave has taken on substantial debt in its race to build AI infrastructure. Operating expenses rose to $2.6 billion, up from $1.2 billion a year earlier. This resulted in an operating loss of $49 million, compared to an operating profit of $19 million in the same period last year. For the full year, the company projects revenue of $12.4 billion to $13.2 billion and adjusted operating profit of $960 million to $1.15 billion.

Some highlights from the second quarter include winning customers such as Bentley Systems, Grammarly, Isomorphic Labs, and Sunday Robotics. CoreWeave also deepened its major commercial partnership with Jane Street, committing to a $1 billion strategic investment, while Meta indicated it will spend an additional $21 billion with CoreWeave during the quarter.

Citi analysts said in a note Wednesday that CoreWeave delivered a "confident message" in the second quarter, highlighting strong AI demand, improved pricing power, growing demand for its software and token business, and better-than-expected margins. They added that this was "one of the cleanest quarters" since the company went public last year. The analysts continued, "We believe the stock should move significantly higher as investor confidence in execution and profitability improvement grows." They pointed to upward earnings revisions and positive updates on execution, customer, and revenue diversification as catalysts.

Analysts said these developments are positive signals for overall demand from hyperscale customers and the new cloud sector.

New Cloud Boom

New cloud providers like CoreWeave, which specialize in GPU infrastructure, have reaped massive gains from the AI boom. Amsterdam-based and Nasdaq-listed Nebius saw its shares soar 20% on Wednesday after announcing a strong business quarter. The company said revenue surged 514% to $575 million, with total contract value quadrupling. The stock has gained over 150% in the past 12 months.

UK-based Nscale, which plans to go public this year, has attracted significant private capital, raising billions of dollars through equity, debt, and project financing in 2026. Data center hardware maker Super Micro Computer saw its shares surge about 14% on Wednesday after reporting in its fourth-quarter earnings that new orders exceeded $60 billion over the past year.