Artificial intelligence (AI) cloud platform CoreWeave is planning an initial public offering (IPO) for 2025 and targeting a $35 billion valuation in the share offering.
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According to media reports, the New Jersey-based company hopes to raise $3 billion from the IPO, which is expected to occur sometime during the second quarter of next year. An IPO from CoreWeave comes amid an ongoing boom in AI. Demand for AI infrastructure such as data centers, high-efficiency servers, and cloud platforms remains exceptionally strong.
CoreWeave provides access to data centers and high-powered microchips for AI applications and models, primarily supplied by Nvidia (NVDA), one of the company’s biggest investors. CoreWeave competes against larger cloud computing service providers such as Microsoft’s (MSFT) Azure and Amazon Web Services (AMZN).
IPO Markets Thaw
A potential IPO from CoreWeave is the latest sign that U.S. capital markets are thawing after several years of being frozen and seeing little activity. A 2022 bear market and high interest rates have prevented many companies from proceeding with planned IPOs.
However, Wall Street is increasingly bullish on the IPO market heading into 2025. A week ago, ServiceTitan, a U.S. based company that sells cloud software to contractors such as plumbers, announced plans for a 2025 IPO. Earlier this year, CoreWeave undertook a $650 million secondary share sale that valued the company at $23 billion.
Is MSFT a Good Stock to Buy?
With CoreWeave’s stock not yet publicly traded, we look instead to one of its biggest competitors, Microsoft. The stock of Microsoft has a consensus Strong Buy rating among 30 Wall Street analysts. That rating is based on 27 Buy and three Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average MSFT price target of $496.84 represents 19.62% upside potential.
