What happened?

A number of stocks jumped in the afternoon session after stronger-than-projected earnings from CoreWeave and heightened valuation expectations for Anthropic renewed momentum in the artificial intelligence trade. 

As reported by AP News, the broader technology rebound lifted the tech-heavy Nasdaq 100 by 1.9 percent in early trading, providing fresh momentum to high-growth software and hardware providers. CoreWeave surged more than 15 percent prior to the opening bell following better-than-expected third-quarter revenue and an upgraded sales forecast for 2026. The positive development helped stabilize shares of major chipmaker Nvidia after a difficult week, reinforcing investor confidence in the continuous capital expenditure flow toward AI infrastructure. 

Furthermore, growing market expectations for a higher valuation ahead of an initial public offering (IPO)—the milestone where a private firm first sells shares to public investors—for AI startup Anthropic offered an additional lift to the sector. 

Together, the stronger corporate outlooks and prospective listings eased recent doubts over sustained demand for specialized data center infrastructure and advanced artificial intelligence chips.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Developer operations company JFrog jumped 7.6%. Is now the time to buy JFrog? Access our full analysis report here, it’s free.
• Endpoint security company SentinelOne jumped 5.5%. Is now the time to buy SentinelOne? Access our full analysis report here, it’s free.
• Advertising software company Zeta Global jumped 7.7%. Is now the time to buy Zeta Global? Access our full analysis report here, it’s free.
• Content delivery company Fastly jumped 7.5%. Is now the time to buy Fastly? Access our full analysis report here, it’s free.
• Communications platform company Bandwidth jumped 9.9%. Is now the time to buy Bandwidth? Access our full analysis report here, it’s free.

Zooming in on Bandwidth

Bandwidth’s shares are extremely volatile and have had 63 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 12 days ago when the stock dropped 12.2% on the news that underwhelming earnings reports from tech giants Amazon and Intel (after mediocre earnings reports from Alphabet and ServiceNow the previous day) sparked widespread investor anxiety regarding aggressive artificial intelligence spending and sustained cash burn. As reported by CNBC, disappointing quarterly reports from both companies triggered a broad slide across technology equities and hardware suppliers, overshadowing positive momentum in other areas of the market. Investors grew increasingly wary of the sector's rising capital expenditures—the funds poured into long-term assets such as data centers and computing hardware. 

With both firms spending heavily to build out artificial intelligence infrastructure, market participants are questioning when these massive investments will translate into meaningful revenue and profit growth per CNBC. The steep drops in Amazon and Intel weighed heavily on market indices, showing how vulnerabilities among dominant technology leaders can rapidly dampen confidence across the broader industry.

Bandwidth is up 239% since the beginning of the year, but at $48.19 per share, it is still trading 38.6% below its 52-week high of $78.44 from July 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Bandwidth’s shares 5 years ago would now be looking at only $589.27.

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