What Happened: AI infrastructure stocks rose Wednesday after spectacular results from AI server hardware maker Supermicro (SMCI) and neocloud providers CoreWeave (CRWV) and Nebius Group (NBIS). IA hosting pairs Applied Digital (APLD) and IREN (IREN) rose. Other areas of the AI infrastructure trade also gained, including optical products maker Lumentum (LITE). Complex memory and storage trading also gained with the Roundhill Memory ETF (DRAM). What’s behind the move: Signs of accelerating demand for everything from computing power to AI server racks to liquid cooling technology sent the entire AI infrastructure complex surging as companies within the space released their results. Nebius shares rose after the company posted quarterly revenue that beat analysts’ expectations. Supermicro reported fourth-quarter results that beat analyst expectations for earnings. The company’s optimistic forecast sent shares up more than 6%. AI and Neocloud hosting players Applied Digital and IREN rose after AI cloud provider CoreWeave released quarterly results highlighting accelerating demand and rising backlogs. And shares of Lumentum (LITE) rose after the maker of optical and photonic products for data centers reported fiscal fourth-quarter revenue that more than doubled to $1.01 billion. Peers Coherent (COHR) and Ciena (CIEN) jumped. The memory and storage complex also rose with the Roundhill Memory ETF (DRAM) rising 4%, while Sandisk (SNDK) rose 4%. Memory maker Micron (MU) rose 4%, along with rival SK Hynix (SKHY). What else you need to know: As companies embrace AI, investors have been backing “picks and shovels” trading, and companies are forecasting strong demand for the infrastructure needed to support the technology. Fundstrat noted Wednesday that among S&P 500 (^GSPC) companies that have reported this earnings season, 87% have beaten estimates, and those that “outperformed” beat expectations by an average of 7%. Inés Ferré is a senior business reporter at Yahoo Finance. Follow her on X at @ines_ferre. Click here for an in-depth analysis of the latest stock market news and events influencing stock prices. Read the latest financial and business news from Yahoo Finance.
