AI cloud trading is making a strong comeback, with capital flowing back to the computing power supply side. Year-to-date, CoreWeave has gained about 42%, Nebius is up about 29.9%, and IREN has risen over 53%. The rebound is driven by improved earnings expectations and technical breakouts. TSMC's better-than-expected earnings report and increased capital expenditure validate the ongoing expansion of AI demand, while its 62.3% gross margin alleviates bubble concerns.

After the previous cycle of sharp rallies and corrections, trading around "AI Cloud"—encompassing AI infrastructure, data centers, and high-performance computing—is returning, with funds flowing back to purer computing power supply-side players.

Since the start of 2026, CoreWeave, Inc. Class A(CRWV.US)  has accumulated gains of over 40%, Nebius Group N.V. Class A(NBIS.US) has risen nearly 30%, and IREN Limited(IREN.US) , which covers both high-performance data centers and Bitcoin mining, has surged more than 53%.

The key drivers of this rebound center on two points: improved earnings expectations and a technical "upward breakout." More importantly, strong signals from the semiconductor side are providing external validation for the "AI Cloud" thesis.

According to Zacks Research, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR(TSM.US) 's better-than-expected quarterly performance and its upward revision of 2026 capital expenditure reinforce the view that AI demand continues to expand. This alleviates the most sensitive risks for the AI cloud service model on both the supply and demand sides, driving market risk appetite back into the more specialized AI computing cloud segment.

1. Capital Returns to the Computing Power Supply Side

At the end of 2025, Iren, Nebius, and CoreWeave were among the most aggressive winners during the AI infrastructure boom, each posting triple-digit gains within months.

As risk appetite cooled and capital withdrew from speculative sectors, these stocks experienced steep corrections. However, according to Zacks Investment Research, this trend has recently begun to shift. Stock prices have stabilized and turned upward, with earnings expectations and forward outlooks starting to improve.

Iren is defined as a vertically integrated digital infrastructure company, with operations covering high-performance data centers and Bitcoin mining, supported by renewable energy generation. Its scalable infrastructure directly benefits from the rising demand for computing power and electricity driven by AI and data-intensive workloads.

Zacks Research notes that Iren's sales are projected to grow about 120% this year and an additional 151% next year. Technically, the stock price formed a double bottom (W-pattern) before breaking upward, which is considered a classic feature of an early-stage uptrend.

Nebius, positioned as an AI-oriented infrastructure and cloud service provider, is supported by upward revisions to its earnings expectations. Looking ahead, the market expects its sales to grow by 376% next year.

CoreWeave, a trigger for last year's "AI sell-off," has completed the initial chip delivery for OpenAI at its Texas data center. According to CoreWeave executives, the company rapidly scaled from "delivering a few racks" in mid-November last year to over 16,000 GPUs by the end of December.
This progress marks CoreWeave's recovery from the revenue hit it suffered in Q4 last year due to delays from data center suppliers.

2. TSMC's Earnings Provide Fundamental Support

For new cloud service providers like CoreWeave and Nebius, TSMC's performance validates their business models.

Since the entire value proposition of AI cloud providers depends on access to cutting-edge AI chips, TSMC's explosive quarterly results and forward guidance alleviate two major risks:

On the supply side, TSMC's record manufacturing yields and capacity expansion mean CoreWeave and Nebius can fulfill their multi-billion dollar order backlogs.

Regarding demand strength, when the world's largest foundry raises its 2026 capital expenditure to between $52 and $56 billion, it indicates that tech companies are still placing large, long-term orders for AI chips.

TSMC's gross margin reaching 62.3% proves the industry is not only growing but also highly profitable, essentially quelling "AI bubble" concerns.

Zacks Investment Research cautions that volatility remains the norm in this "AI Cloud" niche. However, judging from price action and shifts in expectations, market risk appetite is returning to more narrowly focused, crowded trades like AI infrastructure and "AI Cloud," making this capital rotation trend worth continued monitoring.