CoreWeave’s shares surged 169.5% in May 2023, following its initial public offering (IPO) on March 28. The increase was influenced by a strong earnings report and a significant investment from Nvidia, which announced it had raised its stake in CoreWeave.
In addition to the stock jump, CoreWeave secured a 15-year, $7 billion data center expansion agreement with Applied Digital. Analysts responded positively to the company’s raised revenue guidance, though there are concerns regarding its high capital expenditure needs amid substantial investment risks.
As of now, the stock’s valuation is around 15 times its projected revenue, raising questions about its sustainability given the potential volatility tied to its relationships with Nvidia and market demand for AI technologies.
