CoreWeave shares extend gains following $2B Nvidia deal

Investing.com -- Shares of CoreWeave are trading nearly 6% higher in pre-market on Tuesday, extending Monday’s 5.7% gain that followed a $2 billion investment in the company from Nvidia.

Nvidia purchased CoreWeave Class A common stock at $87.20 per share as part of an expanded AI infrastructure partnership. The investment increases Nvidia’s stake in CoreWeave to approximately 9%, up from about 7% at the time of CoreWeave’s IPO.

The collaboration aims to accelerate the buildout of more than 5 gigawatts of AI factories by 2030, significantly expanding CoreWeave’s current capacity of approximately 2.9 gigawatts of contracted power.

Jefferies analyst Brent Thill reiterated a Buy rating on CoreWeave with a $120.00 price target on Tuesday. Thill noted that Nvidia’s support on land and powered shells should ease execution risk and help scaling, while also highlighting the potential for CoreWeave’s software offerings to create "a high-margin, asset-light growth avenue."

The analyst views the increased equity exposure positively, seeing it as a signal of Nvidia’s confidence in CoreWeave’s capabilities and strategic relevance to major AI labs. Thill described CoreWeave as having an "attractive risk/reward profile," trading at 12x Jefferies’ rolled-forward EV/CY28 EBIT.

"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," the analyst said.

In a separate move, Deutsche Bank upgraded CoreWeave to Buy on Tuesday, further boosting investor sentiment toward the stock.

As of Monday’s close, CoreWeave is up roughly 24% year-to-date.

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