CoreWeave (NASDAQ: CRWV) has become one of Wall Street’s most-watched AI infrastructure plays, with its stock price rocketing nearly 250% since its IPO in late March—only to see dramatic swings this week as investors digest a flurry of headline-making developments.
After surging to a record high of $150.48 following a series of bullish announcements, CoreWeave shares retreated sharply, dropping over 16% in a single session as traders locked in profits from the meteoric run-up The volatility comes as the company cements its status as a key provider of GPU-powered cloud infrastructure for artificial intelligence workloads, serving giants like Microsoft and leveraging a strategic 7% investment from Nvidia.
Key Drivers Behind the Moves:.
-
$7 Billion AI Infrastructure Deal: CoreWeave signed a landmark 15-year data center leasing agreement with Applied Digital (NASDAQ: APLD), instantly boosting both companies’ stock prices and signaling a long-term commitment to expanding AI compute capacity.
-
Nvidia’s Growing Stake: Nvidia’s recently disclosed 7% ownership in CoreWeave has fueled bullish sentiment, positioning CoreWeave as a preferred partner in the AI hardware arms race.
-
Record-Breaking AI Benchmarks: CoreWeave reported industry-leading performance using Nvidia’s latest Grace Blackwell chips, completing massive AI training workloads faster than any competitor and underscoring its technical edge.
-
Aggressive Expansion: The company plans to boost capital expenditures by 53% this year, aiming for $21.5 billion as it scales data centers across the U.S. and Europe to meet surging AI demand.
Applied Digital’s Stock Also Surges
Applied Digital (APLD) shares soared nearly 50% on news of the CoreWeave partnership, as the $7 billion deal is expected to drive long-term revenue and solidify APLD’s position as a premier AI data center operator.
What’s Next for CRWV?
Analysts caution that while CoreWeave’s rapid rise reflects the explosive growth in AI infrastructure, the stock’s volatility and the company’s reliance on a few large customers remain risks for new investors Technical chart watchers are eyeing support levels at $122, $97, and $73, with some projecting further upside if bullish momentum resumes.
The AI cloud infrastructure race is heating up—and CoreWeave’s next moves could determine whether this week’s wild swings are just the beginning.
