Market Outlook: Canadian stocks offer exposure to AI buildout

Detailed summary

Lorne Steinberg discusses CoreWeave’s results, software stock valuations and Canadian opportunities tied to AI and infrastructure spending.

CoreWeave’s stronger third-quarter results and increased annual guidance have brought renewed attention to the AI cloud sector following a technology sell-off.

BNN Bloomberg spoke with Lorne Steinberg, co-president of Lorne Steinberg Wealth Management, about the implications for technology shares and opportunities tied to Canada’s major project buildout.

ROGER: CoreWeave showed a strong third quarter, lifting its guidance for the year. The neocloud provider has been facing pressure in recent months as investors continue to weigh a volatile tech trade. Let’s get more from Lorne Steinberg, co-president of Lorne Steinberg Wealth Management. Lorne, thanks as always for joining us.

ROGER: OK, it’s been a rough little while, but a good day today for CoreWeave. What do you see they did right, and what’s driving this?

LORNE: Well, I think the No. 1 thing is the stock’s been under tremendous pressure, in large part due to the amount of money they’ve had to borrow, and the bond prices for CoreWeave have been decimated, which would have made it very difficult to raise more cash. So today’s print, I think, gives investors, first of all, a lot of comfort that CoreWeave’s revenues are on track. They’ve raised their guidance that they’re going to deliver over $13 billion of revenues this year.

ROGER: So, so what does this mean then for other, other neoclouds like Nebulas — Nebius, excuse me — and IREN?

ROGER: So it’s going to — it sounds like it’s going to take some work. There must — there’s opportunities, though, in these moments, isn’t there?

LORNE: Absolutely. The stock is still way down from where it was, but this gives investors a lot of comfort that the company is here to stay for the next few years. That’s for sure.

ROGER: All right. Some names that pop up for you within tech: Constellation, Open Text, Adobe, Alphabet. What are you seeing there? What do you see for opportunities there?

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