Nvidia Doubles Down on CoreWeave Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Investment Doubling: Nvidia nearly doubled its stake in CoreWeave in Q1, increasing from 24.2 million to 47.2 million shares, now holding about 11% worth $4.9 billion, reflecting strong confidence in the cloud computing sector.
- Revenue Surge: CoreWeave's Q1 revenue skyrocketed 112% year-over-year to $2 billion, while maintaining a flat loss per share at $1.40; its backlog surged 284% to $99.4 billion, indicating significant future revenue potential.
- Capital Expenditure Plans: CoreWeave plans to invest between $31 billion and $35 billion in capital expenditures by 2026, and despite high investments, the company claims profitability at the contract level, suggesting promising profit potential as it scales.
- Market Outlook: Although CoreWeave is not yet profitable, its sales multiple has dropped from 27 times in 2025 to about 8 times, and combined with Nvidia's profitability, it may represent a small stake worth holding in a balanced portfolio amid the rapid growth of AI.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 223.470
Low
200.00
Averages
264.97
High
352.00
Current: 223.470
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rapid Expansion Plans: Huang mentioned that the partnership with Anthropic will enable Nvidia to scale very quickly, reflecting the company's confidence in future growth and its commitment to the AI market.
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See More
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See More
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