Chip stocks rallied on Wednesday, with CoreWeave’s strong third-quarter results breathing fresh life into the artificial intelligence trade.
Intel rose 7.4%, AMD gained 5.65% and Broadcom advanced more than 5.39% at the time of writing.
The broader market also provided support, with all three major US indexes opening in positive territory. The tech-heavy Nasdaq Composite was trading 1.5% higher, while CoreWeave shares rallied 21%.
Why CoreWeave results changed market sentiment
CoreWeave reported third-quarter revenue of $3.66 billion, up 168% from a year earlier, and raised its 2026 sales forecast to between $13 billion and $13.3 billion.
The Nvidia-backed cloud provider’s contracted revenue backlog climbed to $132.5 billion from roughly $104 billion at the end of June. Adjusted operating income reached $379 million.
The results are significant for the broader chip industry because CoreWeave purchases advanced computing equipment and rents out computing capacity to AI developers.
Stronger demand for its services supports expectations that data-center operators will continue investing in processors, networking equipment and memory.
AMD stands to benefit from broader demand for AI accelerators and server processors, while Intel also has exposure to server chips and other computing hardware.
Broadcom, meanwhile, is a major provider of optical communication components, Ethernet switching networks and custom backend ASICs that power high-density AI clusters.
CoreWeave’s steep selloff in recent months had heightened concerns about the durability of the AI trade, particularly amid heavy borrowing by companies investing in data-center infrastructure.
However, the latest results have eased some of those concerns, with investors showing renewed confidence in AI-linked companies.
JPMorgan reiterates Broadcom’s Overweight rating
JPMorgan reiterated its Overweight rating on Broadcom, with analyst Harlan Sur saying Google’s latest TPU design aligns with the company’s 3-nanometer roadmap outlined in the brokerage’s autumn research.
Sur expects the TPU 8i Max to begin ramping up in the second half of 2027.
He also said Google’s next-generation 2-nanometer TPU, designated v9.5 or v10, remains on track for production in mid-2028.
JPMorgan believes Broadcom continues to supply Google’s highest-performance and highest-priority TPU programs, providing uninterrupted revenue visibility through 2031.
Recently, DA Davidson analyst Gil Luria raised his Broadcom price target to $400 from $350 following Anthropic’s IPO filing.
“Our reading of the Anthropic S1 leads us to believe the IPO will proceed, Anthropic will raise its capital, and next year OpenAI will raise more capital in its own IPO, allowing Broadcom to meet its expectations for the next couple of years,” Luria wrote in a note to clients.
AMD gets another boost from new server processors
AMD also announced the availability of its sixth-generation EPYC server SP7 processors on Tuesday.
Major cloud service providers, including Microsoft Azure and Oracle Cloud Infrastructure, are preparing to deploy the processors.
AMD said its sixth-generation EPYC server CPUs extend its leadership in server processors and are designed to run AI agents, accelerated infrastructure and critical enterprise applications.
The company said the processors will help customers expand the computing capacity needed to run their businesses.
The latest product launch adds to positive analyst sentiment surrounding the chipmaker.
Analyst Rick Schafer upgraded AMD to Outperform from Perform on Monday and assigned a $600 price target.
He highlighted multigenerational customer wins, Helios rack-scale data-center solutions and a strategic ramp with Anthropic in early 2027.
AI disclosure: AI tools assisted with research and drafting of this piece. An Invezz editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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