Dell Technologies Inc. (NYSE:DELL) shares are trading higher Wednesday along with CoreWeave Inc. (NASDAQ:CRWV), after CoreWeave reported better-than-expected third-quarter results and raised its full-year revenue guidance, which may suggest more AI spending ahead.
- Dell shares are powering higher. Why are DELL shares rallying?
CoreWeave Beats Estimates; Raises 2026 Revenue Guidance
CoreWeave reported a third-quarter adjusted loss of 95 cents per share, narrower than the consensus estimate of a loss of $1.16. The company reported revenue of $3.661 billion, beating the consensus estimate of $3.547 billion, and ended the quarter with a revenue backlog of $132.5 billion and about $4.12 billion in cash and cash equivalents.
CoreWeave raised its fiscal 2026 revenue guidance to $13.0 billion to $13.3 billion from $12.4 billion to $13.2 billion, versus the consensus estimate of $12.857 billion.
"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," said Michael Intrator, CoreWeave’s co-founder and CEO.
Why CoreWeave’s Results Could Matter for Dell
Dell sells AI servers to neocloud operators, and CoreWeave and IREN are among its named customers, according to coverage of Dell’s second-quarter report. A higher revenue outlook and a larger backlog at CoreWeave may suggest it will keep buying infrastructure, which would support demand for Dell’s servers. Dell booked a record $60.9 billion in AI server orders in its latest quarter and ended with a $95 billion backlog.
Concerns about neocloud financing and credit costs have weighed on the AI infrastructure trade in recent weeks, so CoreWeave’s results are also being read as a sign about the health of the group.
Dell Shares Rise
DELL Price Action: At the time of publication, Dell shares are trading 8.03% higher at $361.22, according to data from Benzinga Pro.
Image via Shutterstock