Susana SchwartzDoes CoreWeave rally show hope for neoclouds?
Neocloud CoreWeave saw its stock surge as much as 25% yesterday, after its Q3 earnings call revealed a 168% jump YoY to $3.66 billion. In its investor presentation, CoreWeave’s President and CEO Michael Intrator and CFO and Treasurer Nitin Agrawal spoke of margin expansion, with adjusted operating margins of 10% and an operating income of $379 million.
During the call, the executives and management highlighted a financing plan that includes up-front customer cash and contract-backed loans rather than unsecured bonds to fund infrastructure buildout. Highlights for 2026 included the addition of 9 data centers, with 52 data centers currently active, 1.74 GW of active power and 4.6 GW of contracted power.
Full-year 2026 revenue guidance was lifted to $13.0 billion–$13.3 billion (up from $12.4B–$13.2B), with a 2026 year-end annualized run-rate revenue (ARR) target of $20 billion–$21 billion.
Whether this is an indicator that neoclouds can overcome the hits they took after the midterm election remains to be seen. The CoreWeave results show resilience and a short term rally, but for neoclouds overall, significant debt and political headwinds ahead. As we had written last week, HPC landlords, colocation partners, and digital infrastructure developers may reassess risk factors across state, local, and municipal jurisdictions once the new Congress is sworn in January 3, 2027.
Susana Schwartz
Technology Editor
RCRTech
AI Infrastructure Top Stories
Fiber optics is rapidly becoming one of the most critical pillars of modern AI, with AI data centers containing 10x more fiber than traditional data centers. Check out RCR’s three-part series on how AI is growing fiber assets and changing strategy around fiber architecture and interface rates:
Interconnection follows networks: About 100x more traffic crosses private fiber than public exchanges, with some customers starting new facilities at around 30 terabits of bandwidth and with bundles of 288 fiber strands.
Fiber race splits ‘Big 3’: AT&T’s deal to fold Gigapower and Lumen’s fiber assets into a joint venture with GIP and CPP Investments reflects the different strategic paths of AT&T, T-Mobile and Verizon in the fast-moving fiber race.
From sunk cost to strategic asset: Where fiber was once considered a low-margin piece of connectivity infrastructure, AI is driving up its value and the cost carriers attach to routes, as with Verizon’s $1 billion Google deal for dark fiber.
AI Today: What You Need to Know
Jensen Huang out, Colette Kress in: Nvidia CEO Jensen Huang resigned from Nvidia, and CFO Colette Kress was appointed interim CEO. Increased corporate governance scrutiny will test Nvidia’s role as a pillar of AI hardware financing.
Meta’s new AI infrastructure leader: Former Amazon executive Dave Brown will become Meta Platforms’ head of infrastructure in 2027, replacing Santosh Janardhan to oversee the company’s data center buildouts and AI compute strategy.
AWS segment grew 39%: AWS segment sales jumped 39% YoY to $46.0 billion in Q3 2026 – its fastest growth in nearly 5 years, which reinforced plans for $220B in 2026 Capex, heavily weighted toward AI.
TE Connectivity $60M factory: TE Connectivity is investing more than $60 million to build a 135,000-square-foot R&D and manufacturing facility in Henrietta, NY, where it will produce high-density fiber array units for AI and cloud data centers.
Staera $4.6M for on-chip optical: Staera Semiconductor will receive US$4.6 million in pre-seed funding to commercialize optical interconnect technology that moves large volumes of data efficiently over distances with light built into chips.
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