CoreWeave Stock Surges Nearly 16% After Earnings, Analyst Says Old Nvidia GPUs Can ‘Still Generate Revenue Nearly a Decade Later’

On Tuesday, CoreWeave Inc. (NASDAQ:CRWV) shares jumped nearly 16% in after-hours trading after its second-quarter results, with analyst Daniel Newman pointing to an extended Nvidia Corp (NASDAQ:NVDA) A100 contract as evidence that older AI GPUs may remain valuable far longer than expected.

CoreWeave Stock Jumps After Strong Q2 Results

CoreWeave reported second-quarter revenue of $2.58 billion, topping analysts’ expectations of $2.56 billion, while its adjusted loss of $1.03 per share was narrower than the expected $1.22 loss.

Revenue more than doubled from a year earlier, rising about 112.5%. The AI cloud provider also ended the quarter with a massive $104 billion revenue backlog, up more than threefold year over year.

CoreWeave said the figure does not include more than $25 billion in additional customer commitments secured early in the third quarter.

For the third quarter, CoreWeave expects revenue of $3.45 billion to $3.6 billion and capital expenditures of $11.5 billion to $13.5 billion.

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Analyst Challenges 2-Year Nvidia GPU Lifecycle

Newman, CEO of the Futurum Group, reacted to a report that CoreWeave had signed an A100 contract extending through 2029, saying, “So… about those 2 year lifecycles for GPUs.”

So… about those 2 year lifecycles for GPUs 🙃 https://t.co/OlqLCREpL8

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