BUZZ-SpaceX and Super Micro's financial reports show strong demand for artificial intelligence, boosting Neocloud's stock price

October 21 - ** After the financial reports of SpaceX SPCX.O and Super Micro SMCI.O further confirmed strong demand for artificial intelligence, the stock prices of American new cloud companies rose in pre-market trading.

** CoreWeave CRWV.O shares rose 3.2%, Nebius NBIS.O rose 3.7%, and IREN IREN.O rose 4%.

** SPCX's third-quarter revenue increased by 161% year-on-year, mainly thanks to strong growth in AI business revenue (link), which was driven by the neocloud leasing business. Its business model is based on rapid deployment of computing power and subsequent leasing.

** SMCI reported first-quarter revenue and profit margin far exceeding Wall Street's expectations, indicating resilient demand for AI data centers.

** On Wednesday, SMCI and SPCX share prices rose by 11.7% and 7.8% respectively.

** Piper Sandler, after lowering price targets for CRWV and NBIS, stated that the market is concerned about the growing debt burden, which reduces the companies' margin for error.

** The broker cut CRWV's price target from $153 to $124 and NBIS's price target from $237 to $185.

** Piper Sandler pointed out that high infrastructure costs may make it more difficult for some new cloud companies to remain in operation; scale, power, and terminal risk exposure are critical.

** As of the close of the previous trading day, NBIS's share price has more than doubled this year, while CRWV and IREN shares have fallen by 13.2% and 29.5% respectively.

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