AI Infrastructure Stocks Surge as Nvidia Forecasts Sustained AI Boom
Super Micro and Core Scientific shares climb in after-hours trading, underscoring the broad market impact of the chipmaker's record results.
Shares of key AI infrastructure companies surged in after-hours trading Wednesday, lifted by another quarter of explosive growth from Nvidia and a bullish forecast that signals the multi-billion dollar build-out of artificial intelligence hardware is far from over.
While Nvidia's own stock climbed a modest 2.9% in extended trading, shares of its hardware partners saw more dramatic moves. Super Micro Computer (SMCI), a critical builder of high-density servers for AI, jumped higher, while data center provider Core Scientific (CORZ) saw its stock rise nearly 7%. The rally underscores a widening investor thesis that the AI gold rush benefits not just the chip designer, but also the entire ecosystem of companies providing the essential "picks and shovels."
Nvidia, the epicenter of the AI boom, reported record third-quarter revenue of $57.01 billion, a 62.5% increase from the prior year, crushing analyst expectations. More importantly for the supply chain, the company projected revenue of about $65 billion for the current quarter, a figure that suggests the voracious demand for its advanced processors continues to accelerate.
The market reaction highlights the interconnected fortunes of the AI hardware sector. Super Micro, based in San Jose, works closely with Nvidia to integrate its processors into specialized server systems, including liquid-cooled configurations designed to handle the intense heat generated by AI workloads. As data centers globally race to deploy Nvidia's latest chips, Super Micro's role as a key systems integrator becomes increasingly vital.
Further down the supply chain, Core Scientific's rally demonstrates the depth of the infrastructure build-out. The company provides data center hosting for CoreWeave, a specialized cloud provider that is a major Nvidia partner. The performance of stocks like Core Scientific is seen by analysts as a proxy for the immense physical and power requirements needed to support the AI revolution, a theme that has led to a broader rally in AI-related stocks.
This dynamic illustrates how capital expenditure from cloud giants and enterprises flows through Nvidia and then cascades to a host of other companies—from server makers and cooling specialists to data center operators and power utilities. Investors are increasingly looking beyond the headline chip sales to identify these crucial, but less visible, beneficiaries.
With Nvidia's management signaling a new wave of products and sustained demand into the coming year, the performance of its ecosystem partners will remain a key barometer for the health of the entire artificial intelligence market. For now, the message from Wall Street is clear: the AI factory is still under construction, and the companies supplying the tools are in high demand.