News hot-take
CoreWeave reported Q2 revenue of $2.58B, up 112% year over year and beating the $2.56B estimate. Adjusted operating margin hit 5% versus a 2.7% consensus, sending shares up more than 18.5% in premarket trading.
Super Micro also posted strong results with adjusted EPS guidance of $1.01-$1.10 against an expected 76 cents. Revenue guidance came in at $14.5B-$15.5B compared to the $11.68B estimate, lifting shares more than 7.5% premarket.
Reuters framed these moves as evidence that the AI buildout is real and sustained. If gains persist, CoreWeave could add about $8B in market value while Super Micro might add more than $2B.
The infrastructure spending clearly seems real right now, but what if these companies are over-building? This situation feels similar to telecoms that over-built fiber networks during their own expansion cycle.
These AI firms currently show high revenue and profit, yet they are also taking on lots of debt to fund growth. That leverage could become a significant problem down the road even if today looks bright.
Fresh numbers from two different companies make it hard to argue that spending is slowing this quarter. I prefer updating my view based on this concrete data rather than abstract arguments about where the cycle should be. $CRWV
Not financial advice. For informational and educational purposes only.
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