Nasdaq surges as CoreWeave earnings, Anthropic IPO help tech trade bounce back after Nvidia affair drama
Stocks surged Wednesday as strong AI earnings helped the tech trade recover from a painful start to the week following bombshell revelations of Nvidia CEO Jensen Huang’s affair with an alleged Chinese spy. The Nasdaq and S&P 500 jumped 1.7% and 1.4%, respectively, while the Dow Jones Industrial Average gained 265 points, or 0.5%, by about 3:50 p.m.ET. CoreWeave — a so-called “neocloud” that buys up AI computing power and leases it out to other companies – soared 24% after reporting a massive 168% revenue jump in the third quarter.
It also hiked its 2026 operating income and revenue forecasts. CoreWeave’s biggest customer is Microsoft, which is why it often serves as a bellwether for the AI industry and largely drove other tech stocks higher Wednesday. Advanced Micro Devices, Intel and Broadcom jumped 7.4%, 7.4% and 4.2%, respectively. The tech sector was abuzz after a Tuesday SEC filing revealed that Anthropic is expecting its initial public offering to value the AI startup at a whopping $1.4 trillion. The IPO is expected as soon as next week.Investors also started to come down from full-fledged panic mode over Nvidia’s investigation into its longtime leader, who admitted over the weekend to an affair with Alice Huang, no relation – a suspected Chinese spy. Shares of Nvidia rose 3.4% Wednesday.The stock tanked earlier in the week, shedding more than $400 billion in market value over just two days as traders worried the firm would not stay afloat without Jensen Huang at the helm.“Nvidia’s an extraordinary company, right? It is not one person,” CoreWeave CEO Michael Intrator told CNBC on Wednesday.
“There are thousands of people over there that interface with thousands of people at my company every day.”“With regards to Jensen, I just don’t think it’s really appropriate for me, or for that matter, for anyone to really have too much of an opinion here.They’ve begun a process.
Let’s let the process run.” Nvidia has a ...