TLDR:
- CoreWeave shares closed up 42% at $52.57 on their third trading day
- The company added over $7 billion to its market value since its IPO
- Nvidia-backed CoreWeave raised $1.5 billion in its IPO with a $23 billion valuation
- Microsoft accounts for roughly two-thirds of CoreWeave’s revenue
- Stock shows high volatility with significant price swings in early trading days
CoreWeave has emerged as one of the most closely watched tech IPOs of 2025, with the AI infrastructure company’s stock showing remarkable volatility in its first days of trading. After debuting at $39 per share last Friday, the stock closed at $52.57 on Tuesday, representing a 42% gain that added more than $7 billion to its market value.
The New Jersey-based company provides access to data centers and high-powered Nvidia chips, which have become essential resources in the growing artificial intelligence industry. This position has helped fuel its rapid revenue growth.
CoreWeave had to downsize its initial public offering before its market debut, which initially raised concerns among some investors. Despite this early setback, the stock has rebounded strongly after a brief dip.
The company raised $1.5 billion through its IPO, giving it a valuation of approximately $23 billion on a fully diluted basis. Notably, Nvidia contributed a $250 million order as part of the offering, highlighting the close relationship between the two companies.
From Crypto Mining to AI Infrastructure
CoreWeave’s business journey represents an interesting pivot in the tech space. Founded in 2017 as an Ethereum-focused cryptocurrency mining operation, the company shifted its focus to artificial intelligence infrastructure several years later.
The company completely shut down its mining business following “The Merge,” Ethereum’s 2022 upgrade that dramatically reduced rewards for miners. This strategic shift to AI infrastructure proved timely as demand for AI computing resources has exploded.
This transformation has allowed CoreWeave to capitalize on the surging demand for AI processing power. The company now specializes in providing access to the high-powered computing resources needed for developing and running sophisticated AI applications.
The company’s close relationship with Nvidia goes beyond being a supplier. Nvidia serves as CoreWeave’s main chip provider, second-largest customer, and a significant investor. Nvidia owns 24 million shares of CoreWeave, including 6 million that were purchased during the IPO.
Financial Performance and Customer Concentration
CoreWeave’s financial results show the dramatic growth that has attracted investor interest. In its IPO filing from March, the company reported 2024 revenue of $1.92 billion, a massive increase from $228.9 million in the previous year.
However, this growth has come with substantial costs. The company’s net loss widened to $863.4 million in 2024 from $593.7 million in 2023. This expanding loss reflects the significant investments required to build out AI infrastructure.
A potential risk factor for CoreWeave is its high customer concentration. Approximately two-thirds of the company’s revenue comes from Microsoft, making it heavily dependent on this relationship. Combined with its second-largest customer (likely Nvidia), these two companies account for 77% of CoreWeave’s total revenue.
This customer concentration has raised concerns among some analysts, who view the company’s expansion as potentially precarious. The company’s growth strategy also requires substantial capital expenditures and increasing debt, much of which goes toward purchasing chips from Nvidia.
Less than 10% of CoreWeave’s fully diluted share count is currently trading on the market. This limited float can contribute to greater price volatility, as evidenced by the stock’s performance in its first few trading days.
After closing unchanged on its first day of trading, CoreWeave shares fell as much as 10% on Monday, finishing the day down 7.3%. Tuesday brought a dramatic reversal, with the stock gaining as much as 25% before settling at a 42% increase for the day.
Some investors see Nvidia’s substantial stake in CoreWeave as a source of support for the stock. The chip giant’s involvement signals confidence in CoreWeave’s business model and growth prospects.
As CoreWeave continues to establish itself in the public markets, investors can expect continued volatility. The stock may become a battleground for those bullish on AI infrastructure and those concerned about the company’s financial metrics and customer concentration.
CoreWeave shares closed at $52.57 on Tuesday, significantly above their $40 IPO price, demonstrating strong investor interest despite early challenges with the offering.
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