CoreWeave opened higher in pre-market trade on Tuesday, advancing nearly 6% and extending a 5.7% gain recorded on Monday after Nvidia announced a $2 billion equity investment in the company.
Under the transaction, Nvidia acquired Class A common stock in CoreWeave at $87.20 per share. The purchase raises Nvidia's stake in the cloud infrastructure specialist to about 9% from roughly 7% at the time of CoreWeave's initial public offering.
The enlarged commercial relationship between the two companies is targeted at accelerating the buildout of AI-focused data centers, with plans to scale to more than 5 gigawatts of AI factory capacity by 2030. That target represents a material increase relative to CoreWeave's current footprint, which the company reports as approximately 2.9 gigawatts of contracted power.
Market analysts responded positively to the news. Jefferies analyst Brent Thill reiterated a Buy rating and left a $120.00 price target on the stock, highlighting Nvidia's contribution of land and powered shells as a factor that should ease execution risk and support faster scaling. Thill also pointed to the potential for CoreWeave's software offerings to develop into "a high-margin, asset-light growth avenue."
In his note, Thill described the enlarged Nvidia equity exposure as an affirmative signal of confidence in CoreWeave's strategic relevance to major AI labs and characterized the company as having an "attractive risk/reward profile," noting that the shares trade at 12x Jefferies' rolled-forward EV/CY28 EBIT.
Thill also observed that "With CRWV currently holding ~2.9 GW of contracted power as of last quarter, this partnership marks a meaningful expansion of the company's growth trajectory." Separately, Deutsche Bank upgraded CoreWeave to Buy on Tuesday, contributing further to positive sentiment around the stock.
As of Monday's close, CoreWeave has gained about 24% year-to-date.
Market context
- Pre-market move: nearly 6% higher on Tuesday, following Monday's 5.7% gain.
- Transaction details: Nvidia paid $87.20 per share in a $2 billion equity investment, lifting its stake to ~9% from ~7% post-IPO.
- Capacity goals: partnership aims for more than 5 GW of AI factories by 2030 versus ~2.9 GW contracted today.
Analyst perspective
Jefferies' Brent Thill reiterated a Buy and a $120.00 price objective, emphasizing that Nvidia's support should reduce execution risk and noting the software opportunity for high-margin, asset-light growth. Thill framed CoreWeave as offering an attractive risk/reward at 12x Jefferies' rolled-forward EV/CY28 EBIT. Deutsche Bank's upgrade to Buy further reinforced investor enthusiasm.