CoreWeave shares extended their gain to 21% at Wednesday’s open, touching a two week high and sparking a rally across chip and AI infrastructure stocks after the neocloud provider laid out plans to fund its data center expansion without tapping the unsecured bond market. The SOXX semiconductor ETF climbed 4.8%, led by gains of 8.5% in Marvell, 6.6% in Micron, 6.3% in Intel, 6.2% in Broadcom, and up to 5% in Nvidia, while fellow AI cloud operators Nebius and IREN rose 13% and 8%.
On CNBC Wednesday, CEO Michael Intrator said CoreWeave’s buildout plans are not delayed and that recent Democratic midterm victories, including in Texas, will not affect its ability to deliver US data centers or its $132.5 billion backlog because the vast majority of its Texas power capacity is already operational or permitted and under construction. To bypass unsecured debt yields that recently topped 16%, the company is relying on roughly $9 billion in customer prepayments and deposits expected over the next three months—including more than $3 billion for re-contracting already paid-off GPUs—alongside a planned investment-grade delayed draw term loan expected to yield 7% to 7.5% and cover over 90% of associated capital spending.
