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CoreWeave, AMD, Super Micro and More. Why These Stocks Benefit From Nvidia’s Report.

Nov 20, 2025 07:38:00 -0500 by Adam Clark | #AI

Large technology companies are expected to spend around $600 billion on artificial-intelligence infrastructure next year. (Dreamstime)

Key Points

Nvidia’s earnings report isn’t just big news for the chip maker. A strong forecast for the leader in artificial-intelligence processors is a good signal for a raft of stocks dependent on growth in AI spending.

The most obvious beneficiaries are the companies who buy Nvidia chips in order to rent them out to AI companies. They were reassured that the ramp up of the company’s next-generation Rubin hardware is going smoothly.

AI computing company CoreWeave was up 9.5% in the premarket on Thursday, while software and cloud-computing company Oracle was gaining 3.5%. Both have been the focus of market attention over the heavy debt loads they have taken on in order to build out AI data centers. Server company Super Micro Computer was up 5.9% and crypto miner-turned-AI computing provider IREN was gaining 8.6%.

Nvidia executives specifically pushed back against suggestions that the usable life of its chips was being artificially extended by customers to avoid depreciation expenses, noting hardware sold six years ago is still being fully utilized.

“We expect the overall print will help alleviate investor concerns regarding the AI investment cycle modestly, which should be broadly positive for AI-levered companies in our coverage,” wrote J.P. Morgan analyst Samik Chatterjee.

Other AI chip companies were also benefiting. Advanced Micro Devices was rising 4.5% and Broadcom was gaining 2.9%. While Nvidia CFO Colette Kress said the company’s processors will be the “superior choice” for years to come, her estimate of $3 trillion-to-$4 trillion in annual spending on AI infrastructure by the end of the decade leaves plenty of room for rivals.

Another reason for wider optimism is Nvidia’s funding for the AI sector as a whole. In September, Nvidia and ChatGPT-developer OpenAI announced a letter of intent on a new partnership in which Nvidia plans to invest as much as $100 billion in OpenAI to support the buildout of AI data center capacity.

Nvidia noted in its latest 10-Q filing that the OpenAI report hasn’t been finalized, but CEO Jensen Huang told analysts the company expects “extraordinary returns” from the commitment, as well as its more recent agreement to back AI start-up Anthropic.

“Nvidia’s backing of OpenAI with internal resources and a $100 billion commitment, ironically even helps competitors like AMD and Broadcom and partners like Oracle and CoreWeave—who all need OpenAI to do well,” wrote Melius Research analyst Ben Reitzes in a research note.

Another area where Nvidia acts as both competitor and a driver of growth is in networking hardware. The company’s networking revenue more than doubled in the October quarter from the same period a year ago.

Analysts at J.P. Morgan said that was a positive for optical component suppliers such as Coherent, Fabrinet and Lumentum Holdings, which were all rising early Thursday. And while Nvidia’s Ethernet networking hardware might be taking share, the market still seemed to think growth in the sector was positive for rival Arista Networks which was up 3.5%.

Write to Adam Clark at adam.clark@barrons.com