**AI Cloud Provider CoreWeave Reports $104 Billion Backlog and Raises Capital Expenditure Target**
CoreWeave, a prominent player in the AI cloud computing sector, has announced a significant increase in its annual capital expenditure forecast following a successful second quarter that exceeded analysts' expectations. The company's shares surged more than 14% in extended trading after the announcement, reflecting investor confidence in its growth trajectory.
In its latest financial report, CoreWeave revealed a revenue backlog of $104.2 billion for the second quarter, a notable increase from $99.4 billion in the previous quarter. This growth is attributed to a robust demand for AI cloud services, driven by increasing enterprise spending on artificial intelligence technologies. The company has also secured over $25 billion in net new customer commitments during the current quarter, further solidifying its market position.
CEO Michael Intrator highlighted the company's performance, stating, "We outperformed our plan across the board, with the operating leverage we have been building beginning to show up clearly in our results." He noted that CoreWeave's near-term capacity is effectively sold out, allowing the company to negotiate compute agreements on more favorable terms.
CoreWeave's strategic partnerships, particularly with Nvidia, have been instrumental in its growth. The company serves as a key provider of cloud capacity powered by Nvidia chips, attracting high-profile clients such as Meta, Anthropic, and Caterpillar. This collaboration has positioned CoreWeave as a critical player in the AI infrastructure landscape.
In light of its expanding operations, CoreWeave has revised its full-year capital expenditure expectations to a range of $35 billion to $39 billion, up from its previous forecast of $31 billion to $35 billion. The increase reflects the company's rapid investment in data centers to meet rising demand for AI services.
Analysts have noted the significance of CoreWeave's backlog, which provides "rare multi-year revenue visibility," according to Andrew Rocco, a stock strategist at Zacks Investment Research. Over half of the current backlog is linked to contracts where customer delivery has already commenced, indicating a strong pipeline of revenue.
For the second quarter, CoreWeave reported revenue of $2.58 billion, surpassing estimates of $2.56 billion. The company's adjusted per-share loss of $1.03 was also better than the anticipated loss of $1.20. Capital expenditures for the quarter reached $9.4 billion, an increase from $6.8 billion in the previous quarter.
As the demand for AI cloud computing continues to rise, CoreWeave's strong performance and strategic investments position it well for future growth in an increasingly competitive market.