Market Euphoria Ensues As CoreWeave Explodes 22% After Massive Nvidia Stake…

Wall Street just mainlined another hit of AI euphoria, and this time the dealer was CoreWeave. Shares detonated +22.09% on Friday because Nvidia revealed it now owns 7% of the company. That’s 24.2 million shares, filed under the SEC’s “13G sugar daddy” category, and it sent retail into full-blown hallucination mode. The stock’s already up 81% since its IPO in late March, and now it’s moving with main character energy. 

(Source: Giphy) 

Keep in mind, Nvidia doesn’t just buy 7% of anyone. This is simply a full send into dominating the entire AI infrastructure stack… not just chips, but the compute, the deployment, the cloud, the whole enchilada here. Which makes sense considering CoreWeave is a GPU-cloud provider built specifically for AI workloads, which makes it less like a traditional cloud play and more like a hyper specialized compute drug lab. That aligns perfectly with Nvidia’s current worldview, which is: “Everything is AI, and we sell the oxygen.” 

And yet, the Nvidia stake was just the ignition switch. The real explosion came from the rest of the numbers… and honestly, they’re kind of awesome. CoreWeave’s Q1 earnings dropped like a brick of pure stimulant. Revenue came in at $981.63 million. That’s up 420% year over year. Bigly. Also, remember, this is CoreWeave’s first earnings report post-IPO… which is just downright phenomenal. Translation: AWS and Azure are about to kick rocks. 

(Source: Stocktwits) 

Now sure, the company posted an adjusted loss of $0.61 per share, but in this market, bleeding cash is practically a rite of passage. Profits? Never heard of them. The narrative control is the key here, and CoreWeave’s narrative is now supercharged with Nvidia’s approval stamp and OpenAI’s wallet. Speaking of which, CoreWeave just locked in a $4 billion contract with OpenAI. That’s on top of the $12 billion deal disclosed earlier this year, before the IPO. That’s $16 billion in cumulative AI compute demand from Sam Altman’s favorite science experiment. Repeat after me: this is not normal. 

What’s more is that CoreWeave is deploying Nvidia’s H100 and H200 GPUs at scale. It’s the first cloud provider to offer the GB200 NVL72 for general use. It’s already generating revenue from Blackwell chips. Which means for those of you that are still paying attention, CoreWeave is mining value straight off the back of Nvidia’s prowess. Translation: “Siri, define mooching…” 

(Source: Giphy) 

So yeah, it’s obvious as to why the stock ripped faces off yesterday. It was a trifecta of perfection: 1) Nvidia takes a real stake, not some PR fluff. 2) Revenue growth that reads like a fever dream. 3) A multibillion-dollar OpenAI contract to cement the whole “we’re not just hype” argument. Retail went nuts, institutions took notes, and the stock did exactly what you’d expect when the AI narrative gets another poster child.

In the end, if you’re not paying attention to CoreWeave right now, you might want to start. Because with Nvidia now whispering sweet GPU nothings in its ear? Good luck finding anyone willing to short it. This thing may end up mooning even more next week. Of course, don’t hold me to that and please do your own due diligence. But the narrative is there, so place your bets accordingly, friends. Until next time… 

P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos. 

Stocks.News does not hold positions in companies mentioned in the article.