Neocloud shares gain as SpaceX, Super Micro results show strong AI demand

IREN

Yesterday 13:03

** Shares of US neocloud companies rise in premarket trading after SpaceX SPCX.O and Super Micro SMCI.O results reinforced strong AI demand
** CoreWeave CRWV.O jumps 3.2%, Nebius NBIS.O gains 3.7% and IREN IREN.O up 4%
** SPCX Q3 revenue jumps 161% YoY, led by AI-revenue driven through neocloud rentals, predicated on rapid deployment of computing capacity and renting it out
** SMCI posts Q1 revenue and profit margin comfortably beat Wall Street estimates, signaling resilient AI data center demand
** Shares of SMCI and SPCX up 11.7% and 7.8%, respectively, on Wednesday 
** Concerns are emerging over growing debt obligations, which leaves less room for error for companies, Piper Sandler says after trimming PTs of CRWV and NBIS
** Brokerage cuts CRWV PT to $124 from $153 and NBIS PT to $185 from $237
** High infrastructure costs could make it harder for some neocloud companies to stay in the business; scale, power and end exposure matter - Piper Sandler
** As of last close, NBIS stock more than doubled in value YTD, while CRWV and IREN shares were down 13.2% and 29.5%, respectively 

 (Reporting by Anand Gopal in Bengaluru)
 ((AnandGopal.R@thomsonreuters.com))