Nasdaq Rises 1.6% as CoreWeave Results Drive 5.7% Jump in Semiconductor Index

U.S. stocks rose across the board on Nov. 11, easing concerns over a slowdown in artificial intelligence spending. The Nasdaq led the advance as semiconductor and data-center shares rebounded after CoreWeave posted strong results and raised its full-year revenue forecast.

The Associated Press reported that the Nasdaq Composite closed up 1.60% at 25,466.19. The S&P 500 rose 1.31% to 7,619.38, while the Dow Jones Industrial Average added 0.48% to 52,486.49. The S&P 500 recovered much of last week's sharp drop, narrowing the gap with last month's record high to 2.6%.

CoreWeave, the AI cloud company, surged 24.7% for its biggest one-day gain in about 17 months. The company had been at the center of debate over the profitability of AI investment because of its heavy borrowing and capital spending. Better-than-expected results improved sentiment across related sectors. Data-center shares including Nebius and Applied Digital also rose.

CoreWeave's third-quarter revenue climbed about 168% from a year earlier to $3.661 billion. The company raised its full-year revenue forecast to $13 billion to $13.3 billion, and its adjusted operating margin reached 10% a quarter earlier than planned. Remaining performance obligations, a measure of contracted revenue yet to be recognized, totaled $132.5 billion. Chief Executive Officer Michael Intrator said the company expects about $9 billion in customer prepayments and deposits over the next three months.

Buying also concentrated in semiconductor stocks. The Philadelphia Semiconductor Index jumped 5.7%, while Micron Technology, a supplier of memory for AI servers, soared 11.9%. Nvidia, AMD, Broadcom and Intel also rebounded. CoreWeave's revenue growth and plans to increase investment helped ease concerns about demand for AI computing power, reviving earnings expectations for chip suppliers.

Nvidia rebounded after losing about $430 billion in market value over the previous two sessions. AI-related shares had recently come under pressure amid concern that returns could take longer to materialize given massive infrastructure spending. Even so, CoreWeave's third-quarter net loss widened from a year earlier to $709 million, and its full-year capital expenditure forecast of $37 billion to $39 billion left funding needs and financing costs as lingering burdens.

The macroeconomic backdrop also remains a variable. U.S. consumer prices released a day earlier came in above expectations, strengthening expectations that the Federal Reserve could raise interest rates again. Oil prices also rebounded on Nov. 11, adding to inflation concerns. The U.S. bond market was closed for Veterans Day, but Treasury yields rose in the previous session after the inflation report and hawkish comments from Fed officials.

Investors will look to upcoming earnings for confirmation that increased AI spending is translating into actual orders and revenue. Applied Materials, the semiconductor equipment maker, and Cisco Systems, the networking equipment company, are scheduled to report results on Nov. 12. Their earnings and outlooks, which offer a window into semiconductor manufacturing investment and corporate infrastructure spending, may provide clues on whether the rebound in AI-related shares can continue.