CoreWeave (CRWV) shares surged on Monday morning after data center operators announced a significant order deal with Nvidia (NVDA). This agreement, initially valued at $6.3 billion, allows Nvidia to acquire unsold cloud computing capacity from CoreWeave through April 13, 2032.
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At around 11:03 AM EDT, CoreWeave’s stock traded over 5% higher, reaching about $118.
This new agreement follows a previous contract with Nvidia, from which tech giant Microsoft (MSFT) recently withdrew, opting instead for the rival Nebius (NBIS). There are also concerns among retail investors regarding insider share sales after the IPO lockup period ended.
CoreWeave’s massive contract portfolio
Launched in late March, CoreWeave specializes in cloud computing services tailored for AI and machine learning. The company leases graphics processing units (GPUs) and specialized hardware for demanding workloads, serving clients like OpenAI and Microsoft.
The formal contract with Nvidia, made in early April 2023, reflects a growing demand for AI infrastructure, while CoreWeave’s contract backlog has also doubled to $30.1 billion in the recent quarter.
By the end of the second quarter of fiscal year 2025, CoreWeave reported a 107% year-on-year revenue increase, bringing in $1.2 billion. However, despite crossing the $1 billion revenue mark for the first time during this quarter, the data center operators reported adjusted net losses of $131 million. This is largely attributed to rising interest costs tied to rapid expansion of GPU and data center infrastructure to keep pace with AI growth.
Additionally, the recent orders from Nvidia have sparked excitement among investors, coinciding with the launch of CoreWeave Ventures—an initiative aimed at supporting AI startups. This project targets founders and companies pushing the boundaries of technology within the AI ecosystem.
Should you consider investing in CoreWeave?
The stock analysts on Wall Street hold a moderate buy consensus for CoreWeave, based on evaluations from 25 analysts over the last three months. This includes nine buy ratings, 14 hold ratings, and two sell ratings. The average target price for CRWV is set at $137.70, suggesting a 16% potential upside from its current price point.
