CoreWeave (CRWV) stock is on a winning streak, posting back-to-back gains over the past two days. On Wednesday, shares rose another 8%, driven by news of an expanded partnership with Galaxy Digital Holdings (TSE:GLXY). As part of the deal, CoreWeave has decided to add 260 MW (megawatts) of IT capacity at Galaxy’s Helios data center campus to meet the growing demand for AI and high-performance computing. The stock’s rally builds on momentum from the previous day when it received multiple Buy ratings from top analysts.
CoreWeave, which debuted on the Nasdaq last month, was founded in 2017 as a crypto-mining firm but has since evolved to provide GPU access for AI workloads. Its clients include major names like Microsoft (MSFT), OpenAI, and IBM (IBM). Notably, Nvidia (NVDA) owns 5% of CoreWeave and is a strategic partner.
How the Galaxy Deal Boosts CoreWeave’s Growth
Under the agreement, CoreWeave will lease additional capacity of 260 MW at Galaxy’s data center campus in Texas, signaling growing demand and a positive outlook for the company. The first part of an earlier 133 MW deal is expected to go live in the first half of 2026, while the new 260 MW will be added in stages through 2027.
On top of that, CoreWeave also has exclusive rights to another 133 MW at the Helios site, which could bring the location to full capacity.
Needham Backs CoreWeave’s Expansion
Needham four-star-rated analyst Mike Cikos noted that the deal could last up to 15 years, with CoreWeave paying an average of $2.25 million per megawatt, plus power costs, and operating with a power usage effectiveness (PUE) of 1.5. He believes the timing of CoreWeave’s aggressive expansion is smart, as the company is using its ties with bitcoin mining operators to secure the power infrastructure needed for data centers.
Cikos further stated that a big part of that power could be used for high-performance computing (HPC) data centers, so CoreWeave is likely talking with several of these operators.
CoreWeave Stock Price Forecast
Earlier this week, multiple Wall Street research firms initiated their bullish coverage on CRWV stock. According to TipRanks, CRWV stock has received a Moderate Buy rating based on seven Buys and five Holds. At $47.42, the CoreWeave share price forecast implies an upside of 14% from current levels.
