Semiconductor stocks rebounded sharply in Wednesday's pre-market trading, led by Nvidia, AMD, and Intel, as robust results from cloud provider CoreWeave reignited confidence in artificial intelligence infrastructure spending. The rally came despite a hotter-than-expected US inflation report that raised concerns about future interest rate hikes.
Nvidia gained approximately 2.5%, AMD climbed over 5%, and Intel advanced more than 4% in early trading, while Nasdaq 100 futures rose about 1.4%. The bounce followed Tuesday's tech sell-off, during which Nvidia lost roughly 5.5% amid worries about higher rates and uncertainty surrounding CEO Jensen Huang.
CoreWeave's Strong Results Boost AI Demand Outlook
CoreWeave, a cloud provider backed by Nvidia, reported third-quarter revenue of $3.66 billion, up 168% year-over-year, and raised its 2026 sales forecast to $13 billion–$13.3 billion. The company's contracted revenue backlog surged to $132.5 billion from approximately $104 billion at the end of June, with adjusted operating income reaching $379 million.
These figures are significant because CoreWeave purchases advanced computing equipment and rents capacity to AI developers. Stronger service demand supports expectations that data-center operators will continue investing in processors, networking, and memory. Jamie Hannah, deputy head of investments at VanEck, noted that the results reassured investors anxious about whether AI infrastructure spending could maintain its momentum.
Semiconductor Rebound Led by Nvidia
Nvidia is most directly exposed to CoreWeave's improved outlook, as its graphics processors power much of the cloud company's infrastructure. AMD stands to benefit from broader appetite for AI accelerators and server processors, while Intel has exposure to server chips and other computing hardware.
The rally also followed heavy selling, as Nvidia had slumped on Tuesday after scrutiny of a board investigation involving Huang added to pressure from inflation and technology valuations. The company has stated it has no reason to believe secrets or national security were compromised.
Asian semiconductor markets also recovered, helping lift South Korean and Taiwanese shares. The advance suggests traders are reconsidering how much of the recent sell-off reflected weaker underlying demand rather than worries about financing.
Hot Inflation Keeps Financing Concerns Alive
US consumer prices increased 0.4% in October, above forecasts of 0.3%, while core inflation rose 0.3% against expectations of 0.2%. The figures reinforced expectations of a December Federal Reserve rate increase. Jeff Schulze of Franklin Templeton Institute told CNBC that higher yields and a firmer dollar would pressure risk assets as traders considered the possibility of a larger hike.
That matters for AI infrastructure companies funding massive construction programs through borrowing. CoreWeave's quarterly net loss widened to $709 million, with net interest expense reaching $846 million against $207 million in operating income. The company expects capital expenditure of $37 billion–$39 billion this year.
Gil Luria of D.A. Davidson told Bloomberg that demand for computing capacity remained healthy, but raising enough capital to support further expansion could prove difficult.
This article is for informational purposes only and does not constitute financial advice.
