CoreWeave, the struggling neocloud company at the center of the AI trade, surged 13% in premarket trading Wednesday after reporting better-than-expected third-quarter results, CNBC reports.

Revenue came in at $3.66 billion, a 168% surge from the year-earlier period, exceeding the $3.55 billion analysts polled by LSEG had expected, along with a smaller-than-expected loss.

The company also hiked its full-year revenue outlook, raising it to a midpoint of $13.15 billion from $12.8 billion, according to the Korea Economic Daily via Bloomingbit.

CoreWeave had become, in the words of Korea Economic Daily reporting carried by Bloomingbit, the epicenter of worries over slowing AI investment and funding pressure.

The quarter answered many of those doubts at once: adjusted operating margin reached 10%, hitting double digits a quarter earlier than planned, and remaining performance obligations climbed 27% over three months to $132.5 billion.

Management said GPU contracts were renewed at prices 30% to 50% above the prior quarter even after two rental price hikes, and that most capacity through 2027 is effectively sold out.

The earnings beat rippled across global markets. Nvidia jumped 5% premarket, recovering some of the sharp losses that left the chipmaker down nearly 10% week to date, CNBC reports.

In South Korea, the Kospi closed up 2.6% at 5,375.36 with SK Hynix up 5.4% and Samsung Electronics up 3.6%, while equipment makers like Jusung Engineering (up 17.1%) and Simtech Holdings (up 28.9%) soared.

Brokerages told the Korea Economic Daily that improving margins and clearer funding visibility at CoreWeave had reduced fears of AI overinvestment.

The rebound is not without risk. The Korea Economic Daily reports CoreWeave still carries high interest costs and negative free cash flow of $7.5 billion, though Goldman Sachs called that smaller than the market's forecast of negative $9.1 billion and 'the first step toward a rerating.'

Meanwhile, the macro backdrop is hostile: according to The Motley Fool, October CPI rose 0.4% month over month and the CME FedWatch tool puts the odds of a December rate hike at 100%, with the S&P 500 trading near a Shiller CAPE of 40, a dot-com-era valuation level.

CoreWeave said it will avoid issuing high-interest unsecured bonds through the end of next year and will fund capital spending through delayed-draw term loans and customer prepayments, according to the Korea Economic Daily.

JPMorgan maintained its buy rating, saying earlier-than-expected margin improvement resolved the market's key debate. The company also said 2027 deliveries with secured permits carry no regulatory risk from potential U.S. data-center rules.

Analyst Ko Young-min of Korea Investment & Securities told the Korea Economic Daily that November may mark the start of a turnaround, even as financing concerns persist.