CoreWeave Inc. beat analysts' quarterly revenue estimates Thursday, as the Nvidia-backed cloud provider benefited from surging demand for high-performance computing services used to train and deploy artificial intelligence models.
The company reported total revenue of $2.08 billion for the first quarter, surpassing the average estimate of $1.97 billion compiled by LSEG. Shares rose 3% in extended trading.
The so-called neocloud sector, which includes CoreWeave and peer Nebius, is seeing skyrocketing demand as companies race to secure computing capacity for AI development.
CoreWeave's key advantage is its specialized infrastructure and close relationship with AI chip leader Nvidia, which provides early and large-scale access to the most sought-after AI hardware.