CoreWeave shares bounce back after early dip, reflecting strong investor interest despite initial market volatility.
CoreWeave didn’t take long to bounce back.
Just three days after its public debut, shares of the Nvidia-backed AI infrastructure firm soared more than 42%, closing at $52.57 on Tuesday — a sharp recovery from earlier losses and well above its IPO price of $40.
The company, which went public last Friday, had a rough start. Shares opened at $39 and dropped another 7% by Monday. But Tuesday’s rally sent a strong message: investors are still bullish on the future of AI, especially when Nvidia is involved.
CoreWeave, once a crypto mining startup, has reinvented itself as a key player in AI infrastructure. It provides high-performance cloud computing powered by Nvidia chips, the gold standard for training and deploying AI models. That pivot appears to be paying off — big time.
In its IPO filings, CoreWeave reported a massive jump in revenue: $1.92 billion in 2024, up from just $229 million the year before. But growth hasn’t come cheap. The company also reported a net loss of $863.4 million, citing high infrastructure costs and heavy reliance on its biggest customer, Microsoft, which accounts for nearly two-thirds of its revenue.
Despite a downsized IPO that raised $1.5 billion — including a $250 million investment from Nvidia — some analysts questioned whether investor appetite would hold. For now, it seems the market is responding with cautious optimism.
CoreWeave’s rapid climb mirrors a broader trend in the tech sector, where AI-forward companies continue to attract outsized attention, even amid volatile markets. The company's valuation now hovers around $23 billion on a fully diluted basis.
Of course, volatility remains part of the package. As one Barron's analyst noted earlier this week, “The wild swings could stick around — this is a company burning cash and riding the AI hype wave.”
Still, for a company that just three years ago was mining Ethereum, CoreWeave’s rise is nothing short of remarkable. And with big-name backing and real demand for its services, it's shaping up to be one of this year’s most watched AI stories.
