AI-related shares rebound as CoreWeave earns Goldman upgrade

AI-related stocks rallied on Monday following a bruising decline the previous week, buoyed by softer Treasury yields and declining oil prices. CoreWeave led the recovery, climbing 3.4% after Goldman Sachs upgraded the company to "buy," highlighting its tighter capacity and superior performance that could raise recurring revenue per megawatt over the next two years. The upgrade prompted a 25-basis-point drop in the yield of CoreWeave’s 2031 bond.

Rival neocloud firm Nebius Group and data-centre operators Applied Digital and IREN also posted notable gains. Analysts from Wells Fargo and Morgan Stanley noted that higher rates were unlikely to dent AI capital spending, which they expect to keep growing through 2027. Semiconductor stocks, after an 11% drop last week, showed signs of stabilising, with Intel and other chip makers rising after analyst upgrades. Upcoming earnings from major tech and AI players, including Meta Platforms, Tesla, SpaceX, Lam Research, and Texas Instruments, will test whether investors continue to pay premiums for AI growth.