The shares of CoreWeave (CRWV) jumped on Monday morning after the data centre operator disclosed a new order deal signed with AI chip maker Nvidia (NVDA). The deal, which is initially valued at $6.3 billion, will see Nvidia purchase any unsold cloud computing capacity from CoreWeave until as far as April 13, 2032.
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CoreWeave’s stock traded over 5% higher at around $118 as of 11:03 a.m. EDT.
The new deal, which builds on the cloud infrastructure company’s existing one with Nvidia, comes several days after tech giant Microsoft (MSFT) abandoned its contract with CoreWeave, opting instead for rival company Nebius (NBIS). It also comes as retail investors worry about the recent sell-offs of the company’s shares by insiders following the expiration of its IPO lock-up period.
CoreWeave Boasts $30B Contracts
CoreWeave, which went public in late March, operates data centers that offer cloud computing services optimized for AI and machine learning. The company also rents out graphics processing units (GPUs) and specialized hardware for high-performance workloads. It supplies GPU infrastructure to companies such as OpenAI and Microsoft.
The New Jersey-based company’s new deal with Nvidia was formalized earlier in April 2023. The deal builds on a surge in demand for the company’s AI infrastructure, even as CoreWeave doubled its backlog of contracts to $30.1 billion in its most recent quarter.
Furthermore, at the end of its second quarter for Fiscal year 2025, Coreweave grew its revenue by 107% year-over-year to $1.2 billion. However, despite surpassing $1 billion in revenue for the first time during the quarter, the data centre operator incurred $131 million in adjusted net loss.
This was due to an increase in interest payments on debt used to rapidly expand its GPU and data center infrastructure to meet soaring AI demand.
Meanwhile, the new order from Nvidia comes as CoreWeave recently excited investors with the launch of CoreWeave Ventures, a new initiative to support AI startups. The project is aimed at founders and companies developing the technology that will shape the AI ecosystem and the next frontier of computing.
Can You Buy Stock in CoreWeave?
Turning to Wall Street, CoreWeave’s shares have a Moderate Buy consensus recommendation based on nine Buys, 14 Holds, and two Sells assigned by 25 Wall Street analysts over the last three months. The average CRWV price target is $137.70, which indicates a 16% upswing potential from its current level.
