CoreWeave goes parabolic as love for the new AI darling knows no bounds
Shares of Nvidia-backed CoreWeave surged as much as 20% today in a strong follow-through to the already warm reception to its data center deal with Applied Digital on Monday.
“CoreWeave’s new contract leasing capacity from Applied Digital is most likely driven by strong demand for AI infrastructure, and management diversifying its infrastructure needs,” Bloomberg Intelligence analysts Anurag Rana and Andrew Girard wrote. “These kinds of agreements could help CoreWeave realize its backlog into revenue much sooner, and also help it sign new customers and diversify the revenue base from clients like Microsoft, which made up 62% of total sales in 2024.”
That backlog, by the way, stood at a whopping $25.9 billion at the end of Q1.
The company rents out AI computing time on its stash of 250,000 Nvidia GPUs. Nvidia will stand to gain from this boost, as it currently owns 7% of CoreWeave.
The recently IPO’d cloud computing company has become an options market darling, and that trend is once again on display on Tuesday. As of 1:23 p.m. ET, more than 215,000 call options had changed hands on the stock, about 40% above the one-month average for a full session.
