Stocks rebounded Wednesday as investors bought AI-related shares, recovering some of last week’s losses. The Nasdaq rose 1.6%, the S&P 500 gained 1.3%, the Dow added 0.5%, and the Russell 2000 advanced 0.9%.
The rally had two sharply different AI signals. CoreWeave (CRWV)’s results offered evidence of strong demand for computing capacity. But after the closing bell, Nvidia (NVDA) shares fell about 8% following a report about the board’s plans for CEO Jensen Huang. That late reversal put the day’s optimism in a different light.
CoreWeave Gives AI Investors a Demand Signal
In CoreWeave Earnings Bring Good News for AI Trade, Wajeeh Khan reports that CoreWeave’s third-quarter revenue rose 168% to $3.66 billion. The company raised its full-year revenue guidance to at least $13 billion and reported a $132.5 billion backlog.
Those figures helped support AI-related stocks during Wednesday’s session. They suggest that demand for computing capacity is translating into contracts and revenue, though CoreWeave’s ambitious expansion still requires substantial investment. Strong demand is encouraging for the AI infrastructure trade, but it doesn’t remove questions about the cost and profitability of building that capacity.
Nvidia’s After-Hours Drop Changes the Picture
Nvidia rose 2.9% during regular trading, then dropped about 8% after the bell. The move followed a Wall Street Journal report that Nvidia’s board was preparing to remove Huang. The report was not confirmed by the company at the time, and Reuters said it could not immediately verify it.
Earlier Wednesday, Nvidia Fell 9.5% on the Huang Scandal; Here’s What Happened the Last Time It Panicked by Daud Bhatti examined Nvidia’s recent decline and compared it with earlier price action. The after-hours report added a new source of uncertainty: investors now have to weigh leadership risk alongside the existing debate about AI growth and valuation.
The Rebound Still Faces Tests
In Both the S&P 500 and the Dollar Rise Sharply on November 11, Michael J. Kramer notes that the VIX fell below 12 as stocks rallied, and argues that volatility-driven support for the market may be running its course. That’s a reminder that a sharp rebound doesn’t necessarily mean the recent selling is over.
The Treasury market was closed for Veterans Day, so investors had no regular-session bond-market move to weigh against the rally. The hotter-than-expected October inflation report released Tuesday also remains part of the backdrop, with markets reassessing the likelihood of another Fed rate hike.
What Investors Will Watch
Wednesday showed how quickly sentiment can turn around the AI trade. CoreWeave’s backlog and higher guidance supported the case for real demand, while the Nvidia report highlighted how company-specific risks can overwhelm a broader rally. Investors will be watching for confirmation of Nvidia’s leadership news and looking for more evidence that AI investment can produce durable returns.
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