TLDR Nvidia invested an additional $2 billion in CoreWeave, bringing its ownership stake to 11.5% of the company CoreWeave’s revenue more than doubled in the recentTLDR Nvidia invested an additional $2 billion in CoreWeave, bringing its ownership stake to 11.5% of the company CoreWeave’s revenue more than doubled in the recent

Is CoreWeave (CRWV) Stock a Buy After Nvidia’s Latest Investment?

TLDR

  • Nvidia invested an additional $2 billion in CoreWeave, bringing its ownership stake to 11.5% of the company
  • CoreWeave’s revenue more than doubled in the recent quarter, reaching $1.3 billion as demand for GPU access surged
  • The company holds a massive customer contract backlog of $55.6 billion as of the third quarter
  • CoreWeave spent $1.9 billion on capital expenditures in Q3 and plans to build 5 gigawatts of AI data centers by 2030
  • Interest expenses jumped to $841.4 million in the first nine months of 2025, while operating income dropped to $43.6 million

CoreWeave just secured a major vote of confidence from the AI chip giant. Nvidia pumped another $2 billion into the company through a purchase of Class A common stock.


CRWV Stock Card
CoreWeave, Inc. Class A Common Stock, CRWV

This brings Nvidia’s total stake in CoreWeave to 11.5%. The investment makes CoreWeave Nvidia’s largest holding in its investment portfolio.

The cash injection aims to accelerate CoreWeave’s infrastructure expansion plans. The company wants to build 5 gigawatts of AI data center capacity by 2030.

CoreWeave offers something the market desperately wants right now. The company provides GPU-as-a-Service, giving customers access to Nvidia’s powerful graphics processing units without the hassle of building their own data centers.

Customers can rent by the hour or for extended periods. This flexibility has proven wildly popular.

The numbers show it. CoreWeave’s revenue more than doubled in the recent quarter, hitting $1.3 billion.

The company’s shares surged over 300% following its March 2025 IPO. The stock finished the year up 79% despite a late-year pullback when AI spending concerns surfaced.

The Nvidia Partnership Runs Deep

CoreWeave’s business model essentially revolves around Nvidia’s GPUs. These chips remain the gold standard for AI development and deployment.

Other companies make AI chips, but Nvidia’s offerings continue to lead in power and efficiency. CoreWeave has positioned itself as the bridge between Nvidia’s technology and companies that need it.

The relationship includes some serious commitments. Nvidia agreed to pay for any unused CoreWeave capacity through April 2032, up to $6.3 billion.

This backstop gives CoreWeave financial security as it expands. It also demonstrates Nvidia’s confidence in the partnership.

The new investment guarantees CoreWeave access to Nvidia’s latest technology. This includes the Rubin platform, Vera CPUs, and BlueField storage system.

CoreWeave’s customer list includes heavy hitters like Microsoft and Meta. The company had $55.6 billion in customer contracts in its backlog as of the third quarter.

The Financial Picture Gets Complicated

The growth story comes with some thorns. CoreWeave spent $1.9 billion on capital expenditures in the third quarter alone.

The company also had $6.9 billion in “construction in progress” not yet counted in capex. Meanwhile, operating cash flow reached $1.5 billion through the first nine months of the year.

The math doesn’t add up without debt. CoreWeave will need to borrow heavily to hit its 2030 targets, even with Nvidia’s $2 billion.

Debt has already become a problem. Interest expenses hit $841.4 million in the first nine months of 2025. That’s four times the amount from the same period in 2024.

Operating income took a beating. It fell to just $43.6 million through the first nine months of 2025, down from $211.7 million in the prior year.

Construction delays add another layer of risk. A developer experienced setbacks after the third quarter, which could impact revenue since CoreWeave can’t rent capacity it hasn’t built yet.

The company’s gross margin stood at 49.23%. But interest and depreciation expenses continue eating into the bottom line.

CoreWeave’s stock currently trades at $93.19 with a market cap around $46 billion. The 52-week range spans from $33.52 to $187.00.

Nvidia’s latest investment valued CoreWeave shares higher than recent trading levels. The stock initially jumped on the news before settling back down.

The post Is CoreWeave (CRWV) Stock a Buy After Nvidia’s Latest Investment? appeared first on CoinCentral.

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