CoreWeave CEO Rejects Nvidia Financing Allegations as Ridiculous
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Benzinga
- Financing Allegations Rejected: CoreWeave CEO Michael Intrator forcefully dismissed allegations of 'circular financing' with Nvidia, labeling them as 'ridiculous' and emphasizing that Nvidia's $300 million investment is negligible compared to CoreWeave's over $25 billion capital scale, highlighting a systemic imbalance in compute demand.
- Risk Management Strategy: Intrator explained CoreWeave's use of special purpose vehicles, or 'boxes', to ring-fence risk, ensuring that revenue from investment-grade contracts with companies like Microsoft and Meta is prioritized for operating expenses and debt repayment, thereby mitigating financial risk.
- Depreciation Concerns Addressed: Chief Strategy Officer Brian Venturo revealed that CoreWeave recently renewed a contract for older Nvidia A100 chips at 95% of their original value, countering the narrative of rapid AI hardware depreciation and asserting that long-term contracts validate the ongoing economic relevance of older hardware.
- Stock Performance Analysis: While CoreWeave's shares have fallen by 39.46% over the last six months, they have increased by 100.35% in the past year, indicating a weaker price trend in the short term and reflecting market caution regarding its future growth potential.
Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRWV is 149.70 USD with a low forecast of 36.00 USD and a high forecast of 430.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
13 Buy
11 Hold
1 Sell
Moderate Buy
Current: 77.090
Low
36.00
Averages
149.70
High
430.00
Current: 77.090
Low
36.00
Averages
149.70
High
430.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
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.
