CoreWeave Beats Q2 Revenue Estimates on AI Demand but Posts Larger Loss

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Cloud services provider CoreWeave exceeded second-quarter revenue expectations on Tuesday, driven by strong demand for AI infrastructure, but a larger-than-expected net loss pushed its shares down 10% in after-hours trading.

REVENUE AND BACKLOG

  • Q2 revenue: $1.21 billion (est. $1.08B)

  • Revenue backlog: $30.1 billion as of June 30, up from $25.9 billion on March 31

  • Annual revenue forecast: Raised to $5.15–$5.35 billion from prior $4.9–$5.1 billion

LOSSES AND COSTS

  • Net loss: $290.5 million (est. $190.6M)

  • Operating expenses: Jumped to $1.19 billion from $317.7 million a year earlier
    CEO Michael Intrator noted the main challenge is accessing power shells to support AI infrastructure at scale.

AI GROWTH AND STRATEGY
CoreWeave operates 33 AI data centers in the U.S. and Europe and provides access to Nvidia chips for enterprises training large AI models.
The company highlighted rising demand for AI inference, particularly chain-of-thought reasoning models, which significantly increase computational requirements.

M&A AND CUSTOMER CONCENTRATION

  • CoreWeave’s $9 billion all-stock acquisition of Core Scientific will secure 1.3 GW of power under contract, though some shareholders oppose the deal.

  • The company acknowledged that its reliance on large customers like OpenAI is both a strategic advantage and a potential risk.

  • Contracts with hyperscalers have been expanded to meet growing demand.

MARKET RESPONSE
Shares fell 10% after-hours to $133.71, despite nearly tripling since the March IPO. Analysts noted that strong revenue visibility is tempered by cost growth and customer concentration risks.

Tencent Cites Uncertainty Over U.S. AI Chip Imports Amid Government Talks

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Chinese tech giant Tencent said Wednesday it lacks clarity on the status of U.S. AI chip imports, as Beijing and Washington continue negotiations, though it maintains sufficient inventory for its AI operations.

IMPORT UNCERTAINTY
Tencent President Martin Lau noted that ongoing discussions between the two governments have left the company without a definitive answer on AI chip imports, particularly Nvidia’s H20 chips, designed for the Chinese market and recently scrutinized for security concerns. Lau emphasized that the uncertainty will not constrain Tencent’s AI ambitions, as the company has multiple deployment options and adequate supplies for AI model training.

Q2 PERFORMANCE
Tencent reported strong second-quarter results, beating analyst expectations:

  • Revenue: 184.5 billion yuan ($25.7B), +15% YoY (est. 178.5B)

  • Domestic gaming revenue: 40.4 billion yuan, +17% YoY

  • International gaming revenue: 18.8 billion yuan, +35% YoY

  • Marketing services revenue: 35.8 billion yuan, +20% YoY

  • Net profit: 55.6 billion yuan (est. 52.3B)

AI STRATEGY AND INVESTMENTS
Tencent continues to invest in AI while moderating capital expenditure, which fell to 19.1 billion yuan in Q2 after higher spending in previous quarters. The company is focused on sustainable monetization of its AI initiatives.

Tencent has developed its Hunyuan large language model, releasing the “Turbo S” version in February, while also integrating third-party AI models like DeepSeek across platforms including WeChat, which boasts over 1 billion monthly active users.

eToro CEO Highlights Retail Investor Surge as Q2 Profit Beats Estimates

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Trading and cryptocurrency platform eToro reported stronger-than-expected second-quarter profits, fueled by a surge in retail investor activity during market volatility, CEO Yoni Assia said Tuesday.

MARKET CONTEXT
Retail investors actively “bought the dip” following sharp declines in April after U.S. President Trump announced new tariffs. Assia noted investors targeted high-growth stocks such as Google, Nvidia, and Tesla, echoing patterns seen during the COVID-19 market disruptions when institutional investors pulled back.

Despite the Q2 profit beat, shares of eToro fell 8% post-earnings, reflecting expectations set by the company’s recent May IPO, which saw shares debut above the marketed range. Analysts said the surge in April trading activity was not sustained through July, tempering market enthusiasm.

CRYPTO AND PRODUCT EXPANSION
eToro saw heightened crypto trading activity in July, driven by bitcoin reaching all-time highs. Assia highlighted that regulatory clarity in the U.S. is helping fintech firms expand crypto offerings and attract younger, tech-savvy investors.

The company plans to expand into AI-driven trading strategies and cater to more sophisticated users while maintaining its core retail trading platform, which allows users to invest in stocks, crypto, and other assets while mirroring strategies of top investors.

FINANCIAL HIGHLIGHTS

  • Adjusted Q2 profit: $0.56 per share (est. $0.50)

  • Market focus: Retail investors driving stock and crypto activity