Strong revenue growth from hyperscaler firms reignited the rally in AI suppliers. Led by Micron (MU) and SK Hynix (SKHY) on Wednesday, watch Nebius (NBIS). NBIS shares gained a massive 34.14% to close at $259.20 yesterday.
Nebius allayed fears after reaffirming its outlook for 2026. The company also lowered the time it would take for its capital expenditure to pay itself back. The payback period fell from two to three years down to one year and 10 months.
CoreWeave (CRWV), whose business is arguably riskier due to its debt, gained nearly 20% to close at $107.73. Just a few weeks ago, on July 29, CRWV stock traded below $61. The firm benefited from sold-out near-term capacity. It also benefited from margin expansion from higher pricing. As a result, it raised its revenue outlook for 2026.
Cerebras Systems (CBRS) will give back some of its recent gains. The stock traded down by around 16% in after-hours trading.
In Q2, the firm reported a GAAP EPS loss of $2.98. Revenue of $180.11 million is up by 74.3% Y/Y. The capital expenditure is far too high, while stock-based compensation hurt gross profits. Cerebras is reliant on OpenAI, which loses more money as AI-related revenue increases.
Investors should be wary of holding CBRS stock for the long term.
