On Tuesday, CoreWeave Inc. (NASDAQ:CRWV) shares jumped nearly 16% in after-hours trading after its second-quarter results, with analyst Daniel Newman pointing to an extended Nvidia Corp (NASDAQ:NVDA) A100 contract as evidence that older AI GPUs may remain valuable far longer than expected.
CoreWeave Stock Jumps After Strong Q2 Results
CoreWeave reported second-quarter revenue of $2.58 billion, topping analysts’ expectations of $2.56 billion, while its adjusted loss of $1.03 per share was narrower than the expected $1.22 loss.
Revenue more than doubled from a year earlier, rising about 112.5%. The AI cloud provider also ended the quarter with a massive $104 billion revenue backlog, up more than threefold year over year.
CoreWeave said the figure does not include more than $25 billion in additional customer commitments secured early in the third quarter.
For the third quarter, CoreWeave expects revenue of $3.45 billion to $3.6 billion and capital expenditures of $11.5 billion to $13.5 billion.
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Analyst Challenges 2-Year Nvidia GPU Lifecycle
Newman, CEO of the Futurum Group, reacted to a report that CoreWeave had signed an A100 contract extending through 2029, saying, "So… about those 2 year lifecycles for GPUs."
So… about those 2 year lifecycles for GPUs 🙃 https://t.co/OlqLCREpL8
— Daniel Newman (@danielnewmanUV) August 11, 2026
Haim Zaltzman, vice chair of Latham & Watkins, said there is still limited data on how long GPUs retain value compared with traditional industrial equipment, making it difficult to determine whether their useful life is three, five or seven years, CNBC reported in November 2025.
The report also cited CoreWeave CEO Michael Intrator, who said the company is taking a data-driven approach to GPU shelf life.
Futurum’s market strategist Shay Boloor highlighted the same development, saying the contract shows Nvidia GPUs can "still generate revenue nearly a decade later."
$CRWV signs an A100 contract through 2029 showing $NVDA GPUs launched in 2020 can still generate revenue nearly a decade later.
— Shay Boloor (@StockSavvyShay) August 11, 2026
That longer earning life improves returns on its infrastructure while higher-margin services like managed inference at $100M ARR and non-GPU products… pic.twitter.com/tFd4p5lQgY
In a separate post, Boloor praised the improving quality of CoreWeave’s contracted revenue, with about $42 billion expected to convert within 24 months, up from roughly $15 billion a year ago, giving the company greater visibility into near-term revenue.
"The bottleneck is now execution rather than demand because CoreWeave has ~3.7 GW of contracted power but only ~1.5 GW active so growth depends on bringing capacity online fast enough to turn that demand into revenue," he wrote.
$CRWV backlog has more than tripled YoY to ~$104B, and that still excludes $25B of new customer commitments added in just the first few weeks of Q3.
— Shay Boloor (@StockSavvyShay) August 11, 2026
The quality of that backlog is improving too with ~$42B expected to convert within 24 months versus only ~$15B a year ago giving… https://t.co/SQ7OTaU4yl pic.twitter.com/gV42YMm8sJ
Price Action: CoreWeave closed at $90.32 on Tuesday, up 2.42% and surged 15.72% to $104.52 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, CoreWeave remains bearish across the short-, medium-, and long-term outlooks.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Photo Courtesy: PJ McDonnell on Shutterstock.com
