CoreWeave Jumps After Nvidia Expands Collaboration, Invests $2B

CoreWeave, Inc. (NASDAQ:CRWV) shares are trading higher Monday after the company announced an expanded collaboration with Nvidia Corporation (NASDAQ:NVDA) to accelerate the buildout of more than 5 gigawatts of AI factories by 2030 to advance AI adoption at global scale.

Nvidia Deepens Ties With CoreWeave

As part of the broader partnership, NVIDIA invested $2 billion in CoreWeave Class A common stock at a purchase price of $87.20 per share. The companies said the investment reflects NVIDIA's confidence in CoreWeave's business, team and growth strategy as a cloud platform built on NVIDIA infrastructure.

Under the collaboration, CoreWeave plans to build and operate AI factories using NVIDIA's accelerated computing platform technology. NVIDIA will also leverage its financial strength to help accelerate CoreWeave's procurement of land, power and shell infrastructure for AI factory development.

The companies said they will work together to test and validate CoreWeave's AI-native software and reference architecture, including SUNK and CoreWeave Mission Control, with the goal of deeper interoperability and potential inclusion within NVIDIA's reference architectures for cloud partners and enterprise customers.

CoreWeave also plans to deploy multiple generations of NVIDIA infrastructure across its platform through early adoption of NVIDIA computing architectures, including the Rubin platform, Vera CPUs and BlueField storage systems.

The companies said the expanded collaboration is intended to support large-scale AI adoption as demand for AI infrastructure continues to grow.

Technical Analysis Of CoreWeave

CoreWeave is currently trading 21.2% above its 20-day simple moving average (SMA) and just 0.1% below its 100-day SMA, demonstrating strong short-term momentum. Over the past 12 months, shares have increased 132.45% and are positioned closer to their 52-week highs than lows, reflecting a robust long-term trend.

The RSI is at 56.96, indicating neutral territory, while the MACD is above its signal line, suggesting bullish momentum. The combination of neutral RSI and bullish MACD indicates mixed momentum, which may attract further buying interest if the stock continues to show strength.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for CoreWeave, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 6.91 — Stock is trading at a premium relative to peers.

The Verdict: CoreWeave’s Benzinga Edge signal reveals a stock that is currently showing strong momentum but is trading at a premium, suggesting that while it may be a good buy, investors should be cautious of potential overvaluation risks.

CRWV Price Action: At the time of writing, CoreWeave shares are trading 105.08% higher at $104.35, according to data from Benzinga Pro.

Image via Shutterstock