Backblaze Secures $335M Deal with CoreWeave, Boosting AI Infrastructure Positioning
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: stocktwits
Backblaze Inc. shares surged 9.02% as the company reached a 52-week high following the announcement of a strategic $335 million agreement with CoreWeave to enhance AI storage solutions.
The deal, which spans five years, will provide CoreWeave with multi-exabyte storage capacity, significantly improving its infrastructure for AI workloads. This partnership not only validates Backblaze's position in the AI storage market but also led to an upgrade from Craig Hallum, raising the stock's rating from 'Hold' to 'Buy' and increasing the price target from $6.50 to $16, reflecting strong market confidence in Backblaze's growth potential.
The implications of this agreement are substantial, as it positions Backblaze to capture a larger share of the rapidly growing AI data center market, which is projected to reach $810.6 billion by 2033. The positive market reaction, including a surge in retail sentiment, indicates a significant shift in investor confidence towards Backblaze's future prospects.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy BLZE?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on BLZE
Wall Street analysts forecast BLZE stock price to fall
6 Analyst Rating
6 Buy
0 Hold
0 Sell
Strong Buy
Current: 13.420
Low
8.00
Averages
9.50
High
11.00
Current: 13.420
Low
8.00
Averages
9.50
High
11.00
About BLZE
Backblaze, Inc. is a cloud storage company. The Company's two cloud services that it offers on its Storage Cloud are: Backblaze B2 Cloud Storage and Backblaze Computer Backup. Backblaze B2 Cloud Storage enables customers to store data, developers to build applications, and partners to expand their use cases. The amount of data stored in this cloud service can scale up and down as needed on a pay-as-you-go basis, or can be paid for on a capacity basis or committed contract for greater predictability. This Infrastructure-as-a-Service enables use cases including backups, multi-cloud, application storage, ransomware protection, and storage for artificial intelligence/machine learning workflows. Backblaze Computer Backup automatically backs up data from laptops and desktops for businesses and individuals. This service is offered as a subscription-based Software-as-a-Service and serves use cases including computer backup, ransomware protection, theft and loss protection, and remote access.
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.
Backblaze Secures $335 Million Deal with CoreWeave, Boosting AI Infrastructure Positioning
- Major Deal Secured: Backblaze has signed a five-year, $335 million agreement with CoreWeave to provide multi-exabyte storage capacity, a move that not only validates Backblaze's positioning in AI infrastructure but also lays the groundwork for future market expansion.
- Rating Upgrades: Craig Hallum upgraded Backblaze's rating from 'Hold' to 'Buy' and raised the price target from $6.50 to $16, anticipating that this deal will lead to significant upward revisions in Backblaze's 2027 financial estimates, reflecting market confidence in its growth potential.
- Strong Stock Performance: Following the announcement of the agreement, Backblaze's stock rose 2.9% in premarket trading on Wednesday and gained over 43% in a single session on Tuesday, marking its best performance since March 2024, indicating investor optimism about the company's prospects.
- Retail Sentiment Surge: Retail chatter surrounding Backblaze surged by 18,900% in the past 24 hours, with market sentiment shifting from 'bearish' to 'extremely bullish', suggesting a significant increase in investor confidence that further propelled the stock price upward.
See More
Boundless Bio Merges with Serapha Bio, Stocks Surge
- Boundless Bio Merger: Boundless Bio shares reached a 52-week high of $2.75 after agreeing to merge with private biotech firm Serapha Bio in an all-stock deal, focusing on developing clinical-stage gene-editing treatments for severe Alpha-1 Antitrypsin Deficiency.
- Funding Support: The merger includes $230 million in funding from healthcare investors, which is expected to provide essential capital for Boundless Bio's drug development and clinical trials, thereby strengthening its market position in the gene-editing space.
- Backblaze Major Agreement: Backblaze shares climbed to a two-year high of $11.85 after announcing a five-year, approximately $335 million deal with AI cloud provider CoreWeave, positioning Backblaze as a key storage provider for large-scale AI workloads.
- Market Sentiment Shift: As Boundless Bio and Backblaze stocks surged, investor sentiment significantly improved, with Boundless Bio's sentiment shifting from neutral to 'extremely bullish' and Backblaze's sentiment moving from bearish to 'extremely bullish'.
See More
Semiconductor and AI Stocks Face Selloff Pressure
- Market Selloff: Semiconductor and AI stocks faced significant selling pressure as weakness in Asian chip shares spilled over to the U.S. market, with the VanEck Semiconductor ETF falling 7% and the Philadelphia Semiconductor Index dropping nearly 8%, indicating investor concerns over AI-driven memory demand that could impact future investment decisions.
- U.S. Futures Volatility: Despite a lower close for U.S. stocks on Tuesday, Nasdaq 100 futures rose 0.7% and S&P 500 futures increased by 0.2% as of 9 p.m. ET, reflecting cautious optimism in the market ahead of upcoming economic data and earnings reports that may influence short-term trading strategies.
- Oil Prices Stabilize: With easing tensions between the U.S. and Iran, West Texas Intermediate crude traded near $73 a barrel while Brent crude remained below $80, indicating a diminishing market reaction to geopolitical risks that could affect investor sentiment in the energy sector.
- Stock Movements: Cerebras Systems saw an 11% drop after its post-IPO earnings report showed strong revenue growth but a wider-than-expected adjusted loss, while Palantir Technologies hit a fresh 52-week low despite announcing a partnership with Zeta Global, suggesting ongoing demand for AI infrastructure but insufficient investor confidence.
See More
U.S. Stocks Plunge as Tech Sector Faces Pressure
- Market Decline: The S&P 500 fell by 1.4%, the Nasdaq 100 dropped 3.3%, and the Dow Jones slipped 0.1%, indicating a waning investor confidence in tech stocks as doubts about the sustainability of the AI boom emerge.
- Semiconductor ETF Plunge: The VanEck Semiconductor ETF (SMH) plummeted 7%, primarily driven by declines in shares of Micron, Broadcom, and Nvidia, reflecting market concerns over the semiconductor sector's outlook and prompting investors to reassess their strategies.
- Investor Sentiment Shift: While retail sentiment for SPY was bearish, QQQ and DIA showed bullish sentiment, indicating a divergence in market perceptions that could influence future capital flows across different sectors.
- Foreign Selling Intensifies: The drop in South Korean equities, coupled with foreign institutional investors offloading approximately $2.5 billion in Kospi shares, exacerbates concerns that the recent boom in tech and AI stocks may be overblown, potentially leading to a decline in global investor confidence in these assets.
See More
NeOnc Technologies Secures Drug Authorization, Market Focuses on Clinical Progress
- Clinical Authorization Breakthrough: NeOnc Technologies has received Investigational New Drug authorization from the Department of Health–Abu Dhabi for its NEO100 program, covering adult Phase 1 to Phase 2 studies and establishing a pathway for pediatric development in high-grade gliomas, significantly expanding its international clinical footprint and potentially accelerating parallel advancement of multiple development stages.
- Investor Focus on Data Release: The company expects to report NEO100-01 Phase 2a clinical data by the end of July 2026, and positive results could support discussions for additional regulatory pathways, enhancing market confidence in its product pipeline.
- Gene Editing Strategic Shift: The merger between Boundless Bio and Serapha Bio will create a company focused on gene-editing therapies for Alpha-1 Antitrypsin Deficiency, backed by approximately $230 million in financing, which is expected to support the completion of Phase 2 and initiation of Phase 3 for SERP-01, addressing a significant unmet medical need.
- Data Storage Agreement Surge: Backblaze has signed a five-year, multi-exabyte data storage agreement valued at approximately $335 million with CoreWeave, positioning itself as a key storage provider to meet the growing demand for AI computing capacity, thereby solidifying its strategic position within the rapidly evolving AI ecosystem.
See More
Backblaze Secures $335M Deal with CoreWeave for AI Storage
- Deal Value: Backblaze has secured a five-year deal worth $335 million with CoreWeave to enhance its managed storage infrastructure, which is crucial for optimizing data placement across performance tiers, thereby significantly boosting Backblaze's competitive edge in the AI storage market.
- Stock Reaction: Following the announcement, Backblaze's shares surged 30% in early trading on Tuesday, reflecting strong market confidence in its growth potential, while CoreWeave's shares dipped about 2%, indicating a more cautious investor sentiment regarding its future outlook.
- Market Opportunity: Backblaze estimates a $14 billion opportunity in the neocloud storage market by 2030, having engaged with most top neoclouds and signed multiple six-, seven-, and eight-figure deals, showcasing its robust positioning in the rapidly growing AI-driven infrastructure sector.
- Industry Context: As AI workloads increasingly demand efficient storage solutions, Backblaze's HDD-based storage infrastructure is deemed foundational for AI workflows, with CEO Gleb Budman emphasizing the critical role of storage in AI computing, further solidifying its market position.
See More
Backblaze Secures $335 Million Deal with CoreWeave, Boosting AI Infrastructure Positioning
- Major Deal Secured: Backblaze has signed a five-year, $335 million agreement with CoreWeave to provide multi-exabyte storage capacity, a move that not only validates Backblaze's positioning in AI infrastructure but also lays the groundwork for future market expansion.
- Rating Upgrades: Craig Hallum upgraded Backblaze's rating from 'Hold' to 'Buy' and raised the price target from $6.50 to $16, anticipating that this deal will lead to significant upward revisions in Backblaze's 2027 financial estimates, reflecting market confidence in its growth potential.
- Strong Stock Performance: Following the announcement of the agreement, Backblaze's stock rose 2.9% in premarket trading on Wednesday and gained over 43% in a single session on Tuesday, marking its best performance since March 2024, indicating investor optimism about the company's prospects.
- Retail Sentiment Surge: Retail chatter surrounding Backblaze surged by 18,900% in the past 24 hours, with market sentiment shifting from 'bearish' to 'extremely bullish', suggesting a significant increase in investor confidence that further propelled the stock price upward.
See More
Boundless Bio Merges with Serapha Bio, Stocks Surge
- Boundless Bio Merger: Boundless Bio shares reached a 52-week high of $2.75 after agreeing to merge with private biotech firm Serapha Bio in an all-stock deal, focusing on developing clinical-stage gene-editing treatments for severe Alpha-1 Antitrypsin Deficiency.
- Funding Support: The merger includes $230 million in funding from healthcare investors, which is expected to provide essential capital for Boundless Bio's drug development and clinical trials, thereby strengthening its market position in the gene-editing space.
- Backblaze Major Agreement: Backblaze shares climbed to a two-year high of $11.85 after announcing a five-year, approximately $335 million deal with AI cloud provider CoreWeave, positioning Backblaze as a key storage provider for large-scale AI workloads.
- Market Sentiment Shift: As Boundless Bio and Backblaze stocks surged, investor sentiment significantly improved, with Boundless Bio's sentiment shifting from neutral to 'extremely bullish' and Backblaze's sentiment moving from bearish to 'extremely bullish'.
See More
Semiconductor and AI Stocks Face Selloff Pressure
- Market Selloff: Semiconductor and AI stocks faced significant selling pressure as weakness in Asian chip shares spilled over to the U.S. market, with the VanEck Semiconductor ETF falling 7% and the Philadelphia Semiconductor Index dropping nearly 8%, indicating investor concerns over AI-driven memory demand that could impact future investment decisions.
- U.S. Futures Volatility: Despite a lower close for U.S. stocks on Tuesday, Nasdaq 100 futures rose 0.7% and S&P 500 futures increased by 0.2% as of 9 p.m. ET, reflecting cautious optimism in the market ahead of upcoming economic data and earnings reports that may influence short-term trading strategies.
- Oil Prices Stabilize: With easing tensions between the U.S. and Iran, West Texas Intermediate crude traded near $73 a barrel while Brent crude remained below $80, indicating a diminishing market reaction to geopolitical risks that could affect investor sentiment in the energy sector.
- Stock Movements: Cerebras Systems saw an 11% drop after its post-IPO earnings report showed strong revenue growth but a wider-than-expected adjusted loss, while Palantir Technologies hit a fresh 52-week low despite announcing a partnership with Zeta Global, suggesting ongoing demand for AI infrastructure but insufficient investor confidence.
See More
U.S. Stocks Plunge as Tech Sector Faces Pressure
- Market Decline: The S&P 500 fell by 1.4%, the Nasdaq 100 dropped 3.3%, and the Dow Jones slipped 0.1%, indicating a waning investor confidence in tech stocks as doubts about the sustainability of the AI boom emerge.
- Semiconductor ETF Plunge: The VanEck Semiconductor ETF (SMH) plummeted 7%, primarily driven by declines in shares of Micron, Broadcom, and Nvidia, reflecting market concerns over the semiconductor sector's outlook and prompting investors to reassess their strategies.
- Investor Sentiment Shift: While retail sentiment for SPY was bearish, QQQ and DIA showed bullish sentiment, indicating a divergence in market perceptions that could influence future capital flows across different sectors.
- Foreign Selling Intensifies: The drop in South Korean equities, coupled with foreign institutional investors offloading approximately $2.5 billion in Kospi shares, exacerbates concerns that the recent boom in tech and AI stocks may be overblown, potentially leading to a decline in global investor confidence in these assets.
See More
NeOnc Technologies Secures Drug Authorization, Market Focuses on Clinical Progress
- Clinical Authorization Breakthrough: NeOnc Technologies has received Investigational New Drug authorization from the Department of Health–Abu Dhabi for its NEO100 program, covering adult Phase 1 to Phase 2 studies and establishing a pathway for pediatric development in high-grade gliomas, significantly expanding its international clinical footprint and potentially accelerating parallel advancement of multiple development stages.
- Investor Focus on Data Release: The company expects to report NEO100-01 Phase 2a clinical data by the end of July 2026, and positive results could support discussions for additional regulatory pathways, enhancing market confidence in its product pipeline.
- Gene Editing Strategic Shift: The merger between Boundless Bio and Serapha Bio will create a company focused on gene-editing therapies for Alpha-1 Antitrypsin Deficiency, backed by approximately $230 million in financing, which is expected to support the completion of Phase 2 and initiation of Phase 3 for SERP-01, addressing a significant unmet medical need.
- Data Storage Agreement Surge: Backblaze has signed a five-year, multi-exabyte data storage agreement valued at approximately $335 million with CoreWeave, positioning itself as a key storage provider to meet the growing demand for AI computing capacity, thereby solidifying its strategic position within the rapidly evolving AI ecosystem.
See More
Backblaze Secures $335M Deal with CoreWeave for AI Storage
- Deal Value: Backblaze has secured a five-year deal worth $335 million with CoreWeave to enhance its managed storage infrastructure, which is crucial for optimizing data placement across performance tiers, thereby significantly boosting Backblaze's competitive edge in the AI storage market.
- Stock Reaction: Following the announcement, Backblaze's shares surged 30% in early trading on Tuesday, reflecting strong market confidence in its growth potential, while CoreWeave's shares dipped about 2%, indicating a more cautious investor sentiment regarding its future outlook.
- Market Opportunity: Backblaze estimates a $14 billion opportunity in the neocloud storage market by 2030, having engaged with most top neoclouds and signed multiple six-, seven-, and eight-figure deals, showcasing its robust positioning in the rapidly growing AI-driven infrastructure sector.
- Industry Context: As AI workloads increasingly demand efficient storage solutions, Backblaze's HDD-based storage infrastructure is deemed foundational for AI workflows, with CEO Gleb Budman emphasizing the critical role of storage in AI computing, further solidifying its market position.
See More
