CRWV Stock: CoreWeave’s New Nvidia Deal Turns Heads

Founded in 2017 under the name Atlantic Crypto Corporation, CoreWeave [CRWV] pivoted from bitcoin mining to cloud computing and data center operations in the wake of the 2018 cryptocurrency crash, targeting training workloads for generative artificial intelligence (AI). Its capacity as a cloud service provider is bolstered by its aggressive procurement of Nvidia [NVDA] GPUs, which it deploys at its data centers for hyperscaler clients. 

Indeed, CoreWeave’s relationship with the world’s most valuable company has in no small part guided its fortunes. After becoming Nvidia’s first elite cloud services provider for compute in July 2021, its unique access to advanced AI training hardware became its primary resource; it even used its stock of Nvidia chips as collateral in a debt financing deal in August 2023. 

As the AI boom continues, CoreWeave has struck computing and storage deals with AI heavyweights such as OpenAI, deployed successive generations of Nvidia hardware via cloud computing, debuted on the Nasdaq and made an unsuccessful bid for fellow digital infrastructure provider Core Scientific [CORZ]. 

Now, with a new influx of funds from Nvidia in the works, what’s in store for CRWV stock?

The Age of AI Factories

Refocusing after the official termination of its bid for Core Scientific, CoreWeave is continuing to aggressively build out its data center fleet and chip offerings — as well as expanding partnerships both old and new. 

On January 26, Nvidia announced plans to invest an additional $2bn in CoreWeave to help the cloud service provider build and operate so-called ‘AI factories’ with capacity of over 5GW by 2030. The deal also represents a commitment to deploy multiple generations of Nvidia infrastructure and computing architectures — including the Rubin platform, Vera CPUs and Bluefield storage systems — via CoreWeave’s platform. 

In its Q3 2025 earnings call in November, the company reported revenue growth of 134% year-over-year to $1.4bn, with $25bn in backlog added in the quarter bringing CoreWeave’s total to $55bn. Management highlighted a $14.2bn compute contract with Meta [META], as well as a new deal with OpenAI bringing its commitments to a total of $22.4bn. Regardless, it logged a net loss of $110m for the quarter, down from $360m in the year-ago quarter.

Management guided revenue for FY 2025 in the range of $5.05bn–5.15bn, with capital expenditure on track to reach up to $14bn. Project delays have shifted some major expenditures to the next financial year, with CFO Nitin Agrawal noting during the earnings call that, “given the significant growth in our backlog and continued insatiable demand for our cloud services, we expect CapEx in 2026 to be well in excess of double that of 2025.” 

With expenses seemingly keeping pace with equally robust demand, investors are eager to see the company’s financial indicators signal operational improvements. CoreWeave is expected to report Q4 2025 earnings on March 3 after market close — its fourth such release since going public.

CRWV’s Rocky Post-IPO Road

CRWV stock began trading on the Nasdaq in March 2025 at a price of $40 per share, raising $1.5bn in what was at the time the largest tech IPO since UiPath’s [PATH] 2021 debut. 

Following the wider economic fallout from the ‘Liberation Day’ tariffs announcement in April, the stock rallied sharply, swelling nearly 370% from its IPO price to a peak of $187.00 on June 20. It then began an extended pullback, rising to a brief plateau in September and October 2025 before dipping to a low of $65.22 on November 21. 

As of February 2, CRWV stock is trading at $88.94, up 122.35% from its IPO price, but down 110.25% from its all-time-high. It is up 24.2% in the year to date, buoyed by investor enthusiasm surrounding its most recent deal with Nvidia. 

Running the AI Cloud: CRWV vs SNOW vs NET

As an AI cloud computing provider, CoreWeave both competes with and works for a number of hyperscalers, including Amazon’s [AMZN] AWS and Microsoft [MSFT] Azure. For our purposes, however, it is useful to compare the firm to two similarly sized, pre-profit AI-focused cloud players, each Wall Street darlings in their own right. 

Another key player in the AI ecosystem, Snowflake [SNOW] provides a data platform optimized for AI workloads. Unlike CoreWeave, its business model relies on usage-based pricing of its software, rather than direct access to AI hardware. Its Q3 2026 earnings report, released in December 3, recorded $1.16bn in revenue, up 29% year-over-year. The company’s performance obligations as of October 31 stood at $7.88bn, up year-over-year, with a revenue retention rate of 125% representing continued growth of its client base. Regardless, it has yet to turn a profit, operating at a loss of $329.5m in the most recent quarter.

Cloudflare [NET], meanwhile, provides cyber security, web hosting and cloud services to AI model developers and hyperscalers alike, with several recent outages highlighting its important role in the digital ecosystem. In Q3 2025, the company recorded revenue of $562m, up 31% year-over-year, with 73% of that coming from large customers. Management outlined a target of $3bn annualized revenue by the end of FY 2026, in line with its prior target of $5bn by Q4 2028.

Here are how the three stocks’ fundamentals compare: 

Source: Yahoo Finance

CRWV Stock: The Investment Case

The Bull Case for CoreWeave

There’s never been a better time to be a data center operator, with the compute needs of AI ballooning and the world’s most valuable companies rushing to build or invest in increasingly powerful generative AI models. This is the underlying investment thesis for many AI infrastructure plays, but it is certainly true for CoreWeave, given its unique relationship with Nvidia. 

Following the January 26 announcement, Deutsche Bank upgraded its rating for CRWV stock from ‘hold’ to ‘buy’, lifting its price target to $140 — representing an upside of 57.41% from the February 2 close. It noted that the new Nvidia deal unlocks a number of advantages beyond much-needed capital for growth. First, the funding accelerates CoreWeave’s path to 5GW-plus of AI infrastructure, and it underlines the company’s continued capacity to be first-to-market with new Nvidia compute architecture. Additionally, it provides the potential for CoreWeave’s software to be included in Nvidia’s reference architecture, opening up a new, high-margin opportunity for future cash inflows. 

The Bear Case for CoreWeave

While CoreWeave stands to profit considerably if it can follow through on its impressive commitments, CRWV could take a nosedive should it falter. The company’s investment in pricey AI infrastructure has yet to help it turn a profit. Analysts have underlined its reliance on high-interest debt to purchase chips, and on January 30 law firm Bleichmar Fonti & Auld filed a lawsuit claiming the firm is misleading investors by overstating its ability to meet demand and hiding construction delays. 

It may seem obvious, but it’s also worth mentioning that CoreWeave’s symbiotic relationship with Nvidia could serve as a risk further down the line. If the chipmaker’s fortunes falter, or if it decides to offer competing cloud services in-house, CRWV stock could falter considerably. 

Conclusion

As plays on the AI infrastructure theme continue to dominate investing headlines, CoreWeave’s recent deal with Nvidia could represent a turning point for the company, whose high-risk, high-reward approach to business has long turned heads. While the investment could provide the financial support needed to build out its data center fleet, any failure to deliver on its commitments could severely endanger CRWV stock’s prospects in the near term.