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AI stocks rebound as Coreweave results and Anthropic IPO lift markets
AI-related shares recovered on Wednesday after strong results from Coreweave and reports of heavy investor demand for Anthropic’s planned flotation helped lift technology markets. The gains followed a sharp sell-off the previous week and came despite concerns about the borrowing needed to build data centres and scrutiny surrounding Nvidia.
Nasdaq 100 futures rose 1.5 per cent and S&P 500 futures gained 0.6 per cent, while Coreweave shares climbed about 14 per cent before the market opened. Coreweave’s third-quarter revenue rose 168 per cent to $3.66bn, and it raised its full-year forecast to $13bn-$13.3bn, though it had $35.6bn of debt at the end of June. Anthropic’s proposed share sale could raise $64.4bn at a valuation of about $1.4tn, with bankers reportedly considering a valuation of $1.5tn or more; Nvidia shares also rose about 5 per cent as the company said it had no reason to believe confidential information was compromised.
In short
- AI stocks rose after Coreweave beat revenue expectations.
- Anthropic’s planned IPO could value it at about $1.4tn.
- Coreweave’s debt and Nvidia scrutiny remain concerns.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The rebound can be seen as a reasonable response to evidence that demand for AI computing remains strong: Coreweave reported sharply higher revenue and raised its forecast, while reported investor interest in Anthropic suggests confidence in the sector’s prospects. Supporters may argue that heavy investment and borrowing are justified if they build capacity for a technology with substantial expected commercial value.
The case against
The gains may also be viewed as premature, since strong sales and investor appetite do not establish that today’s valuations or infrastructure spending will generate returns sufficient to cover their costs. Coreweave’s $35.6bn debt highlights the financing risk, while the recent sell-off and scrutiny of Nvidia underline how exposed AI shares may be to changing confidence and unresolved concerns.
Explained simply
AI companies and their suppliers have attracted large investments as businesses build data centres and buy chips to develop and run artificial intelligence systems. Those facilities are expensive, so some companies borrow heavily to pay for them.
Coreweave provides computing capacity from data centres, while Nvidia makes many of the chips used for AI work. Anthropic is an AI company whose proposed share sale would allow investors to buy a stake in the business. Changes in expectations for any of these companies can affect technology shares more broadly.
Investors weigh the prospect of rapid growth against the costs and risks of expanding AI infrastructure. Company results, borrowing levels and demand for new shares can all shape how markets value the sector.
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