In a blockbuster move that’s sending shockwaves through Wall Street and the artificial intelligence (AI) infrastructure market, NVIDIA Corporation (NVDA) has just handed investors a $2 billion reason to take another look at CoreWeave (CRWV) stock. The world’s preeminent AI chipmaker isn’t merely selling silicon anymore. It’s doubling down as a strategic growth partner, committing billions of dollars of fresh capital to fuel CoreWeave’s expansion of AI-optimized data centers and AI factories.
NVDA is investing $2 billion in CoreWeave at $87.20 per share, deepening their strategic partnership to accelerate large-scale AI infrastructure development. The companies plan to build over five gigawatts of AI factories by 2030. CoreWeave will be adopting NVIDIA’s CPUs, storage platforms, and next-generation technologies, including early deployments of Rubin, Vera CPUs, and BlueField systems.
Under the expanded agreement, NVIDIA will also support CoreWeave in securing land, power, and facilities, while jointly testing CoreWeave’s AI software for potential integration into NVIDIA’s cloud and enterprise reference architectures.
The market’s reaction was swift as CoreWeave’s shares surged sharply as investors digested what this deepened partnership could mean for the future of AI cloud infrastructure. NVIDIA’s expanded stake is more than a vote of confidence. It’s a powerful signal that compute demand is accelerating faster than traditional cloud players can keep up.
Based in Livingston, New Jersey, and founded in 2017, CoreWeave has transformed from its roots in cryptocurrency mining into a top-tier provider of GPU-optimized cloud infrastructure for AI training and inference. With a current market cap of about $38 billion, the company continues to expand its presence in the rapidly growing AI infrastructure market.
Since going public in March 2025, CoreWeave’s stock has garnered intense investor interest, propelled by surging AI demand and high-profile partnerships with industry giants such as OpenAI, Microsoft Corporation (MSFT), and Nvidia. The company’s shares debuted at $40 and soared to a peak of $187 on June 20, 2025, amid investor enthusiasm for AI-related plays. However, the rally has since cooled, with the stock closing at $108.86 in the last session. The stock is down around 5.85% over the past six months.
Nevertheless, CoreWeave’s shares have climbed sharply this year largely because of renewed investor confidence and a series of high-profile developments. The most impactful catalyst is NVIDIA’s $2 billion strategic investment, which sent the stock significantly higher as markets interpreted the deal as a strong endorsement of CoreWeave’s growth strategy and long-term potential. On Jan. 26, CoreWeave’s stock climbed about 5.7% largely because the market reacted very positively to NVIDIA’s announcement.
Beyond that headline investment, CoreWeave’s stock performance reflects broader market enthusiasm about the demand for GPU-optimized cloud infrastructure. As enterprises and technology leaders seek more computing power for training and deploying advanced AI models, specialized providers like CoreWeave have captured investor attention as growth beneficiaries. The stock is already up 52% this year.
The stock is currently trading at 9.57 times forward sales, which is a premium compared to its peers.
CoreWeave released its third-quarter 2025 financial results for the period ended Sept. 30, 2025, on Nov. 10. In that quarter, CoreWeave reported record revenue of approximately $1.4 billion, representing a year-over-year (YOY) increase of about 133.7% as demand for AI compute and cloud services surged. The company also expanded its revenue backlog to roughly $55.6 billion, nearly doubling, driven by large multi-year contracts with major AI and hyperscale customers.
Although the company remained unprofitable, reporting a net loss of about $110.1 million, which marked a significant YOY improvement from a $359.8 million net loss in Q3 2024. The loss per share was about $0.22, which was a much narrower loss than the $1.82 per share postd in the year-ago period and also meaningfully better than analysts’ forecasts. Adjusted net loss for the quarter was about $41 million, compared with roughly breakeven results in the prior year.
Despite beating expectations, CoreWeave’s full-year 2025 guidance was revised downward. Management guided to a 2025 total revenue of approximately $5.05 billion to $5.15 billion, and projected adjusted operating income of about $690 million to $720 million.
Analysts, however, anticipate losses to deepen in fiscal 2025, with loss per share expected to rise 100.3% YOY to $2.46, before improving 96.8% to -$0.08 in fiscal 2026.
Recently, several analysts have reaffirmed or raised their outlook on CRWV, pointing to the strengthened partnership with NVIDIA as a key catalyst.
On Jan. 27, Jefferies reiterated a “Buy” rating and $120 price target on CoreWeave, citing the company’s expanded partnership with NVIDIA and strong growth outlook.
Also, DA Davidson upgraded CoreWeave to “Buy” from “Neutral” on Jan. 26, and raised its price target to $110 from $68, citing strengthening AI compute demand and multiple potential de-risking catalysts in 2026.
Also, Mizuho raised its price target on CoreWeave to $100 from $92 but maintained a “Neutral” rating, following the expanded partnership with NVIDIA.
CoreWeave stock has a consensus “Moderate Buy” rating overall. Out of 30 analysts covering the stock, 15 recommend a “Strong Buy,” one gives a “Moderate Buy,” and 14 analysts stay cautious with a “Hold” rating.
CRWV’s average analyst price target of $124.70 indicates a 14.6% upside potential. Plus, the Street-high target price of $200 suggests 83.7% upside ahead.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com