CoreWeave Expands Partnership with Nvidia for AI Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Investment Agreement Expansion: Nvidia has entered a new agreement with CoreWeave, committing to invest $2 billion at $87.20 per share to purchase unsold data center capacity, which is expected to accelerate CoreWeave's construction of over 5 gigawatts of AI factories by 2030, advancing global AI adoption.
- Revenue Growth Potential: As of Q3 2025, CoreWeave's revenue backlog reached nearly $56 billion, a 370% increase from the previous year, primarily driven by substantial contracts from major clients like Meta and OpenAI, indicating strong demand in the AI market.
- Infrastructure Development Support: Nvidia's investment will assist CoreWeave in acquiring land and electricity for new AI data centers, ensuring it remains on track to achieve its 5-gigawatt target by the end of the decade while enhancing its R&D and workforce capabilities.
- Market Valuation Outlook: Analysts expect CoreWeave's revenue to quadruple within two years, and if it reaches $20 billion by 2027, its market cap could approach $110 billion, suggesting Nvidia's investment may yield significant returns.
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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 123.23 USD with a low forecast of 68.00 USD and a high forecast of 180.00 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
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 99.530
Low
68.00
Averages
123.23
High
180.00
Current: 99.530
Low
68.00
Averages
123.23
High
180.00
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.
CoreWeave Secures Major Investment from Nvidia to Accelerate AI Data Center Growth
- Revenue Growth Potential: CoreWeave's revenue backlog reached nearly $56 billion by Q3 2025, a significant increase from $15 billion a year earlier, indicating strong demand and a solid customer base in the AI data center market, particularly from major contracts with Meta and OpenAI.
- Nvidia Investment Acceleration: Nvidia's announcement of a $2 billion investment in CoreWeave at $87.20 per share will facilitate the rapid construction of over 5 gigawatts of AI factories, thereby advancing global AI adoption and solidifying CoreWeave's market position.
- Infrastructure and Technology Enhancement: The investment will be directed towards R&D, workforce improvements, and data center-related expenses, ensuring CoreWeave continues to expand its data center capacity and aims to achieve its 5,000 megawatt target by 2030, enhancing its competitiveness in the AI solutions market.
- Optimistic Market Outlook: Analysts expect CoreWeave's revenue to quadruple within two years, and if it reaches $20 billion by 2027, its market cap could approach $110 billion, suggesting Nvidia's investment may yield substantial returns and attracting more investor interest in CoreWeave stock.
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CoreWeave Receives Nvidia Investment to Accelerate Growth
- Investment to Accelerate Growth: Nvidia's announcement of a $2 billion investment in CoreWeave at $87.20 per share aims to expedite the construction of over 5 gigawatts of AI factories, expected to drive global AI adoption by 2030.
- Surge in Revenue Backlog: As of Q3 2025, CoreWeave's revenue backlog reached nearly $56 billion, a staggering increase of over 270% year-over-year, primarily driven by substantial contracts from major clients like Meta and OpenAI.
- Market Expansion Potential: CoreWeave anticipates generating $20 billion in revenue by 2027, which, at a sales multiple of 5.5 times, would push its market cap close to $110 billion, indicating robust growth prospects.
- Full-Stack AI Solutions: Nvidia's investment will enhance CoreWeave's software suite, transforming it into a full-stack AI solutions provider that not only rents computing hardware but also efficiently builds, deploys, and scales AI solutions.
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