Nvidia-backed AI cloud providers gain Wall Street attention

PARAGRAPH 1 --- Nvidia-backed AI cloud providers are gaining Wall Street attention. On June 23, Nvidia and AWS partnered to simplify production-scale AI with new Amazon EC2 G7 instances powered by Nvidia Blackwell GPUs. CoreWeave, another Nvidia-backed company, became the first AI cloud provider to validate Nvidia's Vera Rubin NVL72 at rack scale on June 1. Meanwhile, optical networking company Coherent is also drawing interest for its role in handling AI applications.

PARAGRAPH 2 --- This narrative is driving interest in AI cloud infrastructure providers and optical networking stocks. Nvidia's influence is spreading, with its backed companies like CoreWeave and Nebius attracting Wall Street's attention. This is pushing up valuations in the sector, with stocks like Coherent, CoreWeave, and HPE hitting record highs. The AI market's growth is also benefiting server manufacturers like Dell and Super Micro Computer.

PARAGRAPH 3 --- Next, watch for CoreWeave's Q2 earnings on August 10, as analysts expect its revenue to double in 2026 and 2027. Also, monitor SpaceX's IPO progress, as speculation mounts about its potential acquisition of an Nvidia-backed AI company. Lastly, keep an eye on Nvidia's earnings on August 17, as any updates on its data center and AI business will provide valuable insights into the sector's growth trajectory.