CoreWeave Stock Surges as AI Hype Meets Hard Questions

CoreWeave ( (CRWV) ) has risen by 12.57%. Read on to learn why.

CoreWeave’s share price climbed 12.57% over the past week as investors warmed to signs that near‑term execution problems may be easing while long‑term demand remains robust. The stock, recently trading around the low $100s, saw heavy options activity with calls outpacing puts, reflecting growing interest in upside exposure even as put demand for downside protection also stayed elevated. Implied volatility eased from prior highs, suggesting the market is starting to price in a more orderly – though still turbulent – trading range.

The main catalyst was a bullish tone from JPMorgan after meetings with CoreWeave’s management, where executives confirmed that the previously delayed third‑party data center project that rattled the stock in November is now back on the schedule laid out in the Q3 2025 earnings call. Management emphasized that demand for AI cloud computing capacity remains “unsolvable,” with customer appetite far outstripping available supply, and reiterated ambitions to reach about 850 megawatts of active power capacity by the end of 2025. Analysts highlighted lengthening contracts, a deepening relationship with Nvidia, and a sizable revenue backlog as key supports for the long‑term story.

At the same time, CoreWeave’s rally has unfolded against a backdrop of elevated risk. The company faces an investor class‑action lawsuit accusing it of understating concentration risks tied to a single key data center supplier and overplaying its ability to meet demand, while earlier weakness in the stock was compounded by a Q3 net loss and execution concerns. JPMorgan and other firms remain cautious, with a Neutral/Hold stance and price targets that allow for upside but acknowledge that CoreWeave shares could be hit hard if market volatility rises or sentiment rotates away from high‑growth AI names. For now, however, the balance of strong structural demand and improving project visibility has been enough to push CoreWeave’s stock 12.57% higher over the week.