AI hyperscaler CoreWeave’s (CRWV) share price climbed 7.6% today as Nvidia ties and AI data centre scaling potential continue to win over investor confidence. CoreWeave closed today at $96.79, marking a 30.92% growth Year to Date. The company has close ties with AI giant Nvidia and has priority access to its latest and most powerful GPUs.
CoreWeave’s massive backlogs, critical position in the AI data centre pipeline, and client list extending to Microsoft and OpenAI make its prospects better. But experts are also considering overvaluation risks, as investors’ confidence here is primarily driven by the narrative positioning of CoreWeave as the “AI darling” more than company fundamentals.
What does CoreWeave Do?
CoreWeave is primarily an AI cloud service that rents out massive Nvidia GPU clusters. AI companies outsource GPU capacity to run and train big AI models. This demand for computational power keeps rising as more and more industries are adapting to AI. CoreWeave focuses on “bare-metal” GPUs, which render up to 96% efficiency for training LLMs (Large Language Models).
In short, Nvidia builds the hardware for the AI boom and data centres like CoreWeave run them. Hence, as much as the AI demand increases, demand for AI hardware will follow through, skyrocketing revenue margins of firms that provide the compute. Traditional clouds like AWS are general-purpose, while CoreWeave is a neocloud that specialize for AI/GPU workload.
Nvidia’s role in CoreWeave’s Rise
NVIDIA is the second biggest stakeholder in CoreWeave with 11.5% stake according to its latest SEC filing. The ties between the two companies became stronger in January 2025 as Nvidia invested $5 billion in CoreWeave. CRWV also has exclusive priority access to Nvidia’s latest Blackwell-series GPUs.
Moreover, Nvidia has a backstop deal of $6.3B with CoreweWeave, where they will buy back any unused GPU capacity through 2031. This serves as insurance for CoreWeave’s expansion. AI giants like Microsoft, OpenAI, and Meta seek its services as it stands first in line to receive Nvidia’s best GPUs.
Privileged access to Nvidia’s recent GPUs also enables CoreWeave to offer compute at cheaper rates than competitors. More advanced GPUs are power-efficient, implying that they will consume significantly less electricity and need less cooling to provide the same level of compute as older GPUs. This broadens CoreWeaves revenue by several notches.
In short, Nvidia has invested more in CoreWeave than it has in any other cloud provider and is giving them its best GPUs. NVIDIA also agree to buy back any unused GPU capacity through 2031. Hence, the biggest AI hardware provider is overtly choosing CoreWeave over others, skyrocketing its valuation.
Wall Street Consensus on CoreWeave
Wall Street analysts see a 28.65% upside in CoreWeave shares with a target price of $124.52. Keith Weiss from Morgan Stanley only sees an upside of 2.28% with a target price of $99, while Jeffries’s top analyst, Brent Thrill, projects 23.98% upside with a target price of $120. The highest target price goes as high as $180, reflecting significant analyst confidence.
