CoreWeave said Nvidia is buying $2 billion worth of its stock. The companies said Monday that they are expanding their partnership to build AI infrastructure.
Nvidia will invest $2 billion more in CoreWeave, which could further stoke concerns about circular financing in the AI ecosystem.
The companies said they would build AI factories on Nvidia's computing-platform technology.
Nvidia has invested $2 billion in CoreWeave at a purchase price of $87.20 per share, the companies said on Monday, adding that they have expanded their partnership to boost CoreWeave's data center build out ambitions.
CRWV's revenue backlog surged to $55.6B by Q3 2025, nearly doubling sequentially as AI cloud demand drives long-term contracts.
CoreWeave is rated 'buy,' as recent pullbacks offer attractive entry points amid strong AI infrastructure demand and a $56B order backlog. CRWV posted Q3 revenue of $1.36B (up 134% YoY), improved net losses, and secured major contracts with Meta ($14.2B) and OpenAI. Despite negative free cash flow and a high 4.85x debt/equity ratio, CRWV's rapid revenue growth and balanced margin profile support premium valuations.
Shares of CoreWeave (NASDAQ:CRWV) were brutally punished as shares eventually went on to shed more than 64% of their value from peak to trough.
The narrative surrounding AI stocks is shifting from speculative hype to disciplined growth. Reasonable valuations, robust earnings, and a supportive regulatory landscape suggest AI stocks have room to run.
CoreWeave surges 119% in a year on booming AI cloud demand, but heavy CapEx, rising debt and valuation concerns raise questions about upside in 2026.
CRWV expects significantly high 2026 capex as AI demand drives rapid scaling, but rising interest costs and margin pressure test execution.
CoreWeave stock (NASDAQ: CRWV) surged +12% on substantial volume, settling close to $90 after CEO Michael Intrator addressed concerns regarding the durability of its GPUs during a podcast. The movement was both sharp and assertive, overcoming resistance from the morning gap-up.
CoreWeave is regaining momentum, up over 12% on Monday. CRWV trades at a valuation discount to neocloud peers, with 7.7x TTM Price/Sales and 19.7x forward EV/EBITDA, despite superior revenue visibility. Execution on power buildout and backlog conversion are critical, and management targets 850 MW of active power by the end of 2025 amid prior delays.