CoreWeave Resumes Uptrend After 50% Summer Drop As CRWV Stock Rebounds Strongly
Thanks to a historic deal with Nvidia and aggressive expansion plans, CoreWeave's stock has rebounded nicely after a severe summer selloff.
Quick overview
- CoreWeave's stock has rebounded sharply after a summer selloff, driven by a significant $6.3 billion order from Nvidia.
- Despite strong revenue growth of 105% year over year, the company faces challenges with profitability, reporting a net loss of $290.5 million.
- Investor concerns are heightened by CoreWeave's ambitious $9 billion acquisition bid for Core Scientific and the recent purchase of OpenPipe.
- The market remains divided on CoreWeave's future, balancing optimism about its growth potential against skepticism regarding its financial management.
Thanks to a historic deal with Nvidia and aggressive expansion plans, CoreWeave’s stock has rebounded nicely after a severe summer selloff. However, due to worries over costly acquisitions and profitability, investors are divided on whether this rebound is permanent.
From Summer Decline to Sharp Reversal
CoreWeave endured a painful correction in the summer, falling more than 55% from late June highs and losing over $100 per share before bottoming at $84.50 in early September. The downturn mirrored weakness in the broader AI-infrastructure space, with rival Super Micro Computer also under heavy selling pressure.
CRWV Chart Daily – The 20 SMA Has Turned From Resistance into Support
This month, however, CoreWeave shares turned sharply higher, climbing above $130 after a 7% daily gain. Analysts point to renewed optimism linked to Nvidia’s major order, though CRWV still faces the technical hurdle of breaking its August high near $150 to confirm a full recovery trend.
Nvidia Agreement Sparks Optimism
Sentiment shifted after CoreWeave secured a $6.3 billion initial order from Nvidia. Under the agreement, Nvidia will purchase any unsold CoreWeave cloud capacity through April 2032, ensuring a long-term revenue buffer.
This deal provides CoreWeave with a safety net and strengthens ties with one of the most important players in AI chips. Investors, however, remain cautious about how effectively CoreWeave can balance contractual obligations with its own client-driven demand.
Expansion Strategy and Acquisition Concerns
Investor anxiety remains focused on CoreWeave’s $9 billion bid for Core Scientific. Negotiations have stalled as shareholders of Core Scientific push for improved terms, raising doubts over whether CoreWeave is overreaching at too high a valuation.
At the same time, CoreWeave announced its acquisition of OpenPipe, a niche AI training company. While the deal bolsters technological capabilities, speculation persists that additional equity issuance may be required to finance these moves. Critics argue this signals management believes the stock is overpriced, a stance that has unsettled shareholders.
Rapid Growth Meets Profitability Challenges
CoreWeave’s second-quarter results highlight the paradox of rapid expansion. Revenue surged 105% year over year to $1.21 billion, backed by major clients like Microsoft and OpenAI. A backlog of $30.1 billion underscores the demand pipeline.
Yet, scaling has come at a steep cost. The company recorded a net loss of $290.5 million, fueled by $2.9 billion in capital expenditures. With plans to invest $20–23 billion annually in infrastructure, investors are questioning how long CoreWeave can sustain such aggressive spending before profitability becomes a serious concern.
Conclusion: CoreWeave’s recovery underscores its central role in the AI infrastructure race, but heavy losses, ambitious acquisitions, and the risk of dilution keep the market divided. For now, optimism about growth potential is clashing with skepticism over financial discipline, leaving the stock at a crossroads.
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