AI cloud company CoreWeave edged past Wall Street estimates for quarterly revenue on Tuesday, driven by strong demand for its computing services that power AI systems.
Shares of the company were up more than 4% in extended trading. They have risen more than 22% so far this year.
CoreWeave, whose close ties with Nvidia have made it a key supplier of Nvidia's AI chips, has attracted several high-profile customers so far this year. It has signed cloud capacity agreements with Meta and Claude creator Anthropic.
To meet the surging demand, CoreWeave has been ramping up infrastructure investments, which has put pressure on its profit margins. The company said its technology and infrastructure expenses surged 125% to $1.51 billion in the quarter.
It reported total revenue of $2.58 billion for the second quarter ended June, compared with analysts' average estimate of $2.56 billion, according to data compiled by LSEG.