CoreWeave (NASDAQ: CRWV), the cloud computing firm backed by Nvidia (NASDAQ: NVDA), has been going parabolic, jumping around 20% in the past five days.
The spike can be chalked up to the positive reception to CoreWeave’s $7 billion data center agreement with Applied Digital (NASDAQ: APLD), whose shares likewise surged over 63% in the same time period.
Bloomberg Intelligence analysts Anurag Rana and Andrew Girard have likewise cited the surging demand for artificial intelligence (AI) infrastructure and CoreWeave’s strategic effort to diversify its operations.
Nvidia, which holds a 7% stake in CoreWeave, is, of course, also expected to benefit from this growth.
CoreWeave stock performance
CoreWeave Stock is now up 275% since the initial public offering (IPO) in March, and it hit its all-time high of $150.50 this week.
CoreWeave’s first earnings report as a public company was likewise impressive, as its revenue for Q1 surged 420% year-over-year (YoY) to $981.6 million.
In addition to Applied Digital, CoreWeave has also partnered with IBM (NYSE: IBM) to supply computing power for IBM’s Granite AI models and currently operates 250,000 Nvidia graphics processing units (GPUs).
CoreWeave’s parabolic momentum thus appears to reflect solid fundamentals and suggests strong upside potential despite short-term volatility.
Featured image via Shutterstock
