US tech stocks surge as AI optimism returns

US technology stocks surged as investors returned to artificial intelligence investments, with the Nasdaq erasing last week’s losses, according to the Financial Times. Better-than-expected results from CoreWeave and the prospect of a higher valuation for Anthropic’s planned initial public offering helped drive the recovery.

The rebound marked a reversal after a difficult stretch for AI-linked shares. Investors found fresh encouragement in an earnings report from a computing infrastructure supplier and expectations surrounding a potential listing by an AI developer, bringing two different parts of the industry into focus.

CoreWeave reported third-quarter revenue of $3.66 billion, an increase of 168 per cent, City AM reported. The cloud computing company also raised its full-year revenue forecast to between $13 billion and $13.3 billion, providing a stronger backdrop for investors assessing the scale of demand for AI computing services.

The company supplies computing power to AI developers, including Anthropic, according to City AM. Its results therefore offered a view of activity in the infrastructure supporting AI applications, rather than simply expectations about their future adoption. The market response suggested that stronger operating figures could still draw buyers back after a sell-off.

Profitability remained an important part of the picture. Reuters reported that CoreWeave expected to become profitable in 2028, easing immediate concerns about whether demand could support its debt-funded expansion. That outlook offered reassurance, but it remained a forecast rather than evidence that the company had already reached that milestone.

Anthropic supplied a second catalyst as investors considered the prospect of a higher valuation for its planned IPO. The Financial Times identified that possibility as a driver of improving sentiment, while Reuters reported that the company was pressing ahead with a listing at a $1.4 trillion valuation. A prospective valuation is not a completed transaction or a guarantee of how shares will perform after listing.

Together, the developments helped reconnect enthusiasm for AI developers with confidence in the infrastructure businesses serving them. They did not, however, settle the broader question of how quickly investment in computing capacity would translate into sustainable profits. Revenue growth, financing requirements and eventual returns remain distinct considerations when assessing the industry’s expansion.

The recovery also unfolded against a less supportive interest-rate backdrop. Reuters reported that technology shares lifted global equities even as expectations of further Federal Reserve tightening increased. Investors were looking past that pressure to focus on company-specific developments, rather than responding to an unambiguously brighter economic outlook.

Attention now turns to whether subsequent results and developments around Anthropic’s listing reinforce the renewed confidence. CoreWeave’s profitability timetable and revenue guidance provide benchmarks against which future performance can be assessed. For now, the recovery shows how quickly sentiment can improve when stronger earnings and anticipated demand for a major share offering arrive together.