AI infrastructure stocks surge after strong earnings from CoreWeave, Supermicro

AI infrastructure stocks surged Wednesday after Supermicro, CoreWeave, and Nebius Group reported strong results, with Supermicro beating Q4 earnings expectations and issuing upbeat Q1 guidance, sending shares up over 6%. Lumentum shares gained after fiscal Q4 revenue more than doubled to $1.01 billion, while the Roundhill Memory ETF rose 4% and Micron and SK Hynix each jumped 4%.

What happened: AI infrastructure stocks jumped on Wednesday after blowout results from AI server hardware maker Supermicro SMCI https://finance.yahoo.com/quote/SMCI/ and neocloud providers CoreWeave CRWV https://finance.yahoo.com/quote/CRWV and Nebius Group NBIS https://finance.yahoo.com/quote/NBIS . AI hosting peers Applied Digital APLD https://finance.yahoo.com/quote/APLD and IREN IREN https://finance.yahoo.com/quote/IREN moved higher. Other areas of the AI infrastructure trade also gained, including optical product maker Lumentum LITE https://finance.yahoo.com/quote/LITE , and the memory and storage complex trade also gained with the Roundhill Memory ETF DRAM https://finance.yahoo.com/quote/DRAM . What's behind the move: Signs of accelerating demand for everything from computing power to AI server racks to liquid cooling technology sent the entire AI infrastructure complex higher as companies within the space posted their results. Nebius stock surged after the company posted quarterly revenue that topped analyst expectations. Supermicro reported fourth quarter results that beat analyst expectations on earnings https://finance.yahoo.com/technology/article/supermicro-tops-q4-earnings-expectations-offers-strong-q1-guidance-stock-jumps-210004983.html . The company's upbeat forecast sent shares higher by more than 6%. Neocloud and AI hosting players Applied Digital APLD https://finance.yahoo.com/quote/APLD/ and IREN IREN https://finance.yahoo.com/quote/IREN/ also moved higher after artificial intelligence cloud provider CoreWeave CRWV https://finance.yahoo.com/quote/CRWV/ posted quarterly results https://finance.yahoo.com/technology/article/coreweave-stock-soars-after-company-narrows-q2-losses-193036479.html highlighting accelerating demand and a surging backlog. And Lumentum LITE https://finance.yahoo.com/quote/LITE/ shares gained after the maker of optical and photonic products for data centers posted fiscal fourth quarter revenue more than doubled to $1.01 billion. Peers Coherent COHR https://finance.yahoo.com/quote/COHR/ and Ciena CIEN https://finance.yahoo.com/quote/CIEN both jumped. The memory and storage complex also rose with the Roundhill Memory ETF DRAM https://finance.yahoo.com/quote/DRAM/ up 4%, while high-flyer SanDisk SNDK https://finance.yahoo.com/quote/SNDK/ rose 4%. Memory maker Micron MU https://finance.yahoo.com/quote/MU/ jumped 4%, along with rival SK Hynix SKHY https://finance.yahoo.com/quote/SKHY/ . What else you need to know: As companies adopt AI, investors have been backing the "picks and shovels" trade, with companies forecasting strong demand for the infrastructure needed to support the technology. Fundstrat noted Wednesday that, among S&P 500 companies that have reported this earnings season, 87% have beaten estimates, with those that "beat" exceeding expectations by a median of 7%. Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines ferre . Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance