CoreWeave (CRWV) stock soared on Tuesday after the American artificial intelligence (AI) cloud-computing company announced a $14.2 billion deal with Meta Platforms (META). This infrastructure deal will have CoreWeave providing Meta Platforms with the computing power it needs to handle AI applications. This follows a similar deal that was made with ChatGPT creator OpenAI last week.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
A filing with the Securities and Exchange Commission (SEC) revealed that the agreement between CoreWeave and Meta Platforms was reached on September 25 and will last through December 14, 2031. Meta Platforms also has the option to extend the agreement through 2032 if it needs additional cloud computing power.
Meta Platforms’ need for AI computing power makes sense, as the world is caught up in an AI boom. This has various companies and services leveraging AI in their workflow. CoreWeave offers an important service as its data centers serve as homes to a large number of Nvidia’s (NVDA) GB300 systems, which are used for AI computing. Nvidia leads the AI market with its chips, and access to systems utilizing the company’s tech is highly sought after. This highlights the importance of CoreWeave’s position as a middleman between Nvidia and Facebook owner Meta Platforms.
CoreWeave Stock Movement Today
CoreWeave stock was up 12.14% during pre-market trading on Tuesday, following a 1.81% rally yesterday. Investors will also note that the shares have surged 230.42% year-to-date and over the past 12 months. CRWV stock started the day with strong trading, as some 6 million shares changed hands, compared to a three-month daily average of 32 million units.
Is CoreWeave Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for CoreWeave is Moderate Buy, based on 15 Buy, 10 Hold, and two Sell ratings over the past three months. With that comes an average CRWV stock price target of $146.40, representing a potential 19.49% upside for the shares.
