CoreWeave’s IPO launched on March 28, 2025, pricing shares at $40, below the expected $43-$47 range, valuing the company at $23 billion. It closed flat on the launch day, but surge 65% over the last 2 days. Let’s see what CoreWeave is and how it pulled this off.
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What is CoreWeave?
CoreWeave (CRWV) is an AI cloud computing company that rents out access to NVIDIA (NVDA) GPUs, focusing on high-performance computing for AI workloads like machine learning and generative AI. It serves major clients, including Microsoft, which accounted for 62% of its 2024 revenue, and recently signed a $12 billion, five-year deal with OpenAI for cloud infrastructure. With 32 data centers housing over 250,000 GPUs by 2024, it’s designed for speed and scale, supporting industries like visual effects and 3D graphics.
Why Did Its Stock Jump 65% in Two Days?
CoreWeave’s stock soared nearly 65% from March 31, 2025, closing at $61.36 today, driven by renewed market enthusiasm for AI infrastructure, and its high-profile OpenAI contract, boosting investor confidence. NVIDIA’s $100 million investment and $320 million contract have also fueled early momentum.
What is Its Outlook?
The evidence leans toward a strong growth outlook, with CoreWeave projecting $8 billion in revenue for 2025, up 730% from $1.9 billion in 2024, reflecting booming AI demand. However, it reported a net loss of $863 million in 2024, raising concerns about profitability. Its reliance on a few clients (62% from Microsoft in 2024) is a risk, but big contracts like OpenAI’s could drive future success.
Who Are Its Competitors, and How Is It Doing Among Them?
CoreWeave competes with giants like Amazon (AMZN) AWS, Microsoft (MSFT) Azure, and Google (GOOGL) Cloud, which dominate public cloud infrastructure. It’s a niche player, focusing on AI GPU compute, with strong ties to NVIDIA and big clients. While it’s carving a position with contracts like OpenAI’s, its revenue concentration and losses make it less diversified than rivals, posing challenges in a competitive landscape.
https://360miq.com/tool?code=AMZN,CRWV,GOOGL,MSFT,NVDA&tf=d&from=2025-01-01&to=
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