AI-focused cloud computing provider CoreWeave’s (CRWV) share price jumped 5.7% as Nvidia announced that it purchased $2 billion worth of its publicly traded shares. CoreWeave’s stock is currently trading at $98.31. The company’s share prices grew 37% in January 2026, as AI cloud computing is aggressively expanding and is in high demand.
CoreWeave is often termed as the ‘AI darling’ as the company has landed big contracts from Microsoft, OpneAI and has priority access to Nvidia’s most recent and powerful GPUs. The company’s performance beats most other cloud providers as its Q3, 2025 revenue hit $1.4 billion (134% YoY) and has massive backlogs.
CoreWeave: Riding the AI Infrastructure Boom
CoreWeave was listed on Nasdaq in late March 2025 at $40 a share. The share price grew 145% in less than a year as the company became associated with big players like Nvidia, Microsoft, and OpenAI. It distinguished itself from the cloud hyperscalers like AWS and Azure by specializing in GPU-heavy workloads for training large AI models.
It stands out as one of the AI-focused neoclouds whose demand is skyrocketing as billions are being poured into the AI race. Both big players like Microsoft and OpenAI, and smaller companies, seek CoreWeave’s services as its GPUs are more efficient and provide cheaper compute.
CoreWeave’s powerful GPU clusters are fueled by Nvidia’s cutting-edge chips, which outperform most commercially produced counterparts. The company even deploys Blackwell (Nvidia’s most recent and powerful GPU generation) clusters in liquid-cooled racks, rendering an infrastructure specialized for training large AI models.
Special Relationship with Nvidia and Investor Confidence
A major factor in CoreWeave’s meteoric rise is its close relationship with Nvidia. The company was one of the earliest adopter to Nvidia platforms like Blackwell, Rubin, BlueField storage, and vera CPUs. Moreover, Nvidia’s CEO has praised its expansion strategy and speed as “unmatched execution velocity.”
NVIDIA also has a history of saving CoreWeaves’s IPO by flushing in $250 million. NVIDIA also has a $6.3 Billion service backstop commitment with CRWV. That is, if CoreWeave can’t find customers for all its GPU capacity through 2032, Nvidia will purchase the capacity itself.
Apart from injecting billions into CoreWeave and providing them with de facto financial security, Nvidia is also providing them with priority access to its latest chips. The AI boom has made it harder for smaller firms to get their hands on Nvidia’s powerful chips, as the demand far exceeds the supply.
NVIDIA is currently prioritizing AI hyperscalers, with the DRAM shortage cutting consumer GPU production. CoreWeave is one of the selected few that gets access to their Blackwell generation GPUs. And CoreWeave’s state-of-the-art cooling and power delivery is well optimized to integrate these GPUs the fastest.
Will CoreWeave Stock Rally Through 2026?
NVIDIA’s $2 billion investment makes it the second biggest stakeholder in CoreWeave with a ~9-11% stake. NVIDIA does not possess stakes of similar magnitude in any other cloud computing company. Hence, it’s highly likely that Nvidia will continue favoring CoreWeave with its most powerful and AI-specialized GPUs.
On the other hand, the company is facing a class action lawsuit for misleading investors on its capacity to meet the AI demand. Insiders selling $411 million worth of shares have also muddled investor confidence slightly. Wall Street analysts see an average upside of 27% for CorWeave. The average target price is set at $124.91, with the highest target price going up to $180.
