CoreWeave’s stock began trading on the Nasdaq exchange at $39 per share, which was below the company’s initial public offering (IPO) price of $40.
The start of trading was disappointing for CoreWeave, a seller of artificial intelligence (AI) technology that is backed by chipmaker Nvidia (NVDA) and counts Microsoft (MSFT) as its biggest customer. For Nvidia, the debut was especially disappointing given that the company placed a $250 million order for CoreWeave shares at the $40 IPO price.
Despite the lackluster debut, CoreWeave was still the biggest technology IPO in the U.S. since 2021. The company, which remains unprofitable, raised $1.50 billion from the share sale. That was double the $750 million raised by social media company Reddit (RDDT) during its IPO in March 2024. On the eve of the IPO, CoreWeave lowered the final price to $40 per share from initial pricing of $47 to $55.
Capital Markets Test
Given CoreWeave’s focus on AI and data centers, its IPO was being closely watched by investors from Wall Street to Silicon Valley. Many analysts said that the IPO was a test of U.S. capital markets, which have been in a funk since the 2022 bear market. However, the timing of CoreWeave’s market debut was problematic coming as it does with growing uncertainty around tariffs and a slowing U.S. economy.
Indeed, CoreWeave’s stock began trading on a day when the Dow Jones Industrial Average is down more than 700 points and the technology-laden Nasdaq index has fallen nearly 3%, with technology stocks leading the averages lower following a hot inflation report and signs of weakening consumer confidence. CoreWeave also faces declining investor sentiment towards the AI trade and data centers.
Is NVDA Stock a Buy?
It’s too early for analysts to have issued ratings and price targets on CoreWeave’s stock. So instead we’ll look at Nvidia, one of CoreWeave’s biggest investors. Nvidia stock has a consensus Strong Buy rating among 42 Wall Street analysts. That rating is based on 39 Buy and three Hold recommendations issued in the last three months. The average NVDA price target of $176.54 implies 60% upside from current levels.
