European stocks rebound as CoreWeave raises 2026 revenue outlook
The STOXX Europe 600 advanced as AI demand optimism met higher infrastructure spending, with Nvidia results scheduled for Nov. 17.
Theo Marchetti
European stocks rose on Wednesday after Nasdaq-listed CoreWeave, Inc. NASDAQCRWV lifted its annual revenue outlook, with Reuters attributing the technology-led rebound to renewed optimism about AI demand. The STOXX Europe 600 INDEXSTOXXSXXP rose to 660.71 at 2:33 p.m. CET on Wednesday, according to Google Finance.
CoreWeave's Nov. 10 results release raised its revenue forecast for 2026 to US$13.0 billion to US$13.3 billion. The AI-cloud operator now expects capital expenditure of US$37 billion to US$39 billion for the year.
CoreWeave reported a US$709 million net loss for the quarter ended Sept. 30, despite revenue reaching US$3.661 billion. The same release put net interest expense at US$846 million, exceeding operating income of US$207 million.
NVIDIA Corporation NASDAQNVDA shares closed US$9.87 lower at US$168.80 on Nov. 10, according to Google Finance's 4 p.m. EST Nasdaq quote. The company lists its quarterly results event for Nov. 17.
Higher Sales Come With Higher Spending
CoreWeave's quarterly revenue increased from US$1.365 billion a year earlier, while its net loss widened from US$110 million, according to the Nov. 10 release. The company added more than 200 megawatts of active power during the quarter, taking its active footprint to over 1.7 gigawatts.
The lower end of CoreWeave's previous 2026 capital expenditure forecast was US$35 billion, the Nov. 10 release said. CoreWeave said the increase reflected its expectation to deploy infrastructure and deliver it to customers sooner than planned.
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"This was a breakout quarter for CoreWeave, with revenue increasing by more than $1 billion sequentially and adjusted operating margins reaching double digits a quarter ahead of plan," chief executive Michael Intrator said in the Nov. 10 release.
CoreWeave also reported revenue backlog of US$132.5 billion as of Sept. 30. The measure includes remaining performance obligations and other estimated revenue under committed customer contracts, subject to delivery and service availability requirements.
The results offer two different measures of the AI investment cycle: revenue records customer spending already recognized, while capital expenditure measures investment needed to expand the infrastructure serving that demand. Faster growth can therefore accompany continuing pressure on cash and financing.
Nvidia Results Are Scheduled For Nov. 17
The STOXX Europe 600 spans 17 countries and 11 industries, according to its provider, giving diversified European portfolios exposure beyond the AI trade.
Alberto Conca, chief investment officer at Swiss wealth manager LFG+ZEST, told Reuters that AI demand remained strong while questioning the sustainability of CoreWeave's debt burden. He also described an equity rally broadening toward value sectors and Europe.
Nvidia's fiscal third-quarter results webcast is scheduled for Nov. 17 at 5 p.m. EST. The release will give investors another dated earnings report against which to assess the rebound in AI sentiment.
