Coreweave Pops 28 Should You Buy This Ai Stock Marketbeat

Bonisiwe Shabane

-Dec 2, 2025, 10:49 PM

coreweave pops 28 should you buy this ai stock marketbeat

Adding around $10 billion in market capitalization in less than a week amounts to a not-too-shabby few days at the office for the recently public company CoreWeave NASDAQ: CRWV. From May 14 to May 19, the stock gained over 28%. CoreWeave reported its first earnings as a public company on May 14, with analysts at JPMorgan calling the results "impressive." Yet, shares fell by over 2% the next day. However, further news from CoreWeave and its Magnificent Seven backer, NVIDIA NASDAQ: NVDA, really allowed shares to explode to the upside. So, what’s driving the big rise in shares in such a short period? What do CoreWeave's results reveal about the strength of its business, and ultimately, does this stock truly represent an attractive opportunity going forward?

Despite beating significantly on revenue growth expectations, the price action after CoreWeave’s first earnings report wasn’t all that inspiring. CoreWeave reported astounding sales growth of 420% from the previous year's quarter. CoreWeave (CRWV +5.02%) has been the biggest IPO of the year so far. After weaker-than-expected demand for its IPO, CoreWeave went public for a lower price than it had targeted, and Nvidia came in and invested in the stock to help prop up the offering. The stock then slumped as the broad market sold off in response to the "Liberation Day" tariffs that President Trump issued. However, after bottoming in April, CoreWeave began to rally, tracking with a boom in AI stocks.

From its IPO price of $40, the stock soared as high as $187 on June 20, a nearly 400% gain. Since then, the stock has come down to earth, falling 28% from that peak. Should investors buy the dip in the stock? Let's take a closer look. Adding around $10 billion in market capitalization in less than a week amounts to a not-too-shabby few days at the office for the recently public company CoreWeave (NASDAQ: CRWV). From May 14 to May 19, the stock gained over 28%.

CoreWeave reported its first earnings as a public company on May 14, with analysts at JPMorgan calling the results "impressive." Yet, shares fell by over 2% the next day. However, further news from CoreWeave and its Magnificent Seven backer, NVIDIA (NASDAQ: NVDA), really allowed shares to explode to the upside. So, what’s driving the big rise in shares in such a short period? What do CoreWeave's results reveal about the strength of its business, and ultimately, does this stock truly represent an attractive opportunity going forward? Despite beating significantly on revenue growth expectations, the price action after CoreWeave’s first earnings report wasn’t all that inspiring. CoreWeave reported astounding sales growth of 420% from the previous year's quarter.

CoreWeave went public on March 28, 2025 and its shares soared 368% from $40 to $187 in June 2025. Since then, the company’s stock price has declined by a third – taking a particularly hard fall after the July 7 announcement of a deal for CoreWeave to acquire its landlord, Core Scientific, for... Shares of both companies have dropped significantly since then. Prior to the deal, CoreWeave stock had risen – probably too much. Although CoreWeave’s revenue is growing rapidly, the company is losing money, is highly indebted, and faces intense rivalry from larger cloud services providers. In addition, CoreWeave depends heavily on one customer – Microsoft – whose AI Copilot does not compare favorably to those from faster-growing rivals like OpenAI’s ChatGPT and Perplexity.

If too few customers subscribe to Copilot, perhaps Microsoft will not need as much of CoreWeave’s services. CoreWeave has issued billions of dollars in new debt – which has boosted its stock price. In May, the company sold $2 billion worth of notes – sending the stock up 19%, according to CNBC. On July 21, the company announced an additional $1.5 billion debt sale – due in 2031. Issuing new debt to pay off existing debt does not inspire as much confidence as would operating a profitable business generating sufficient cash to repay CoreWeave’s financial obligations. Written by Keithen Drury for The Motley Fool->

CoreWeave is an AI-focused cloud computing infrastructure provider. It needs to become profitable quickly due to the relatively short lifespans of GPUs. CoreWeave (NASDAQ: CRWV) has been one of the hottest IPO stocks on the market this year. While it was a lackluster performer for its first month or so, mostly hovering in the vicinity of its $40 per share IPO price, it then began a two-month surge that lifted it to... With all of the artificial intelligence (AI) computing deals that have been announced in recent weeks, it's unusual for an AI-related stock not to be near its all-time high. This makes CoreWeave look like it could be an attractive investment -- but is this a buying opportunity or a trap?

CoreWeave is a U.S.-based provider of GPU-accelerated cloud infrastructure designed to support compute-intensive workloads such as artificial intelligence, machine learning, visual effects rendering and other high-performance computing applications. The company supplies access to large fleets of modern GPUs and complementary infrastructure that enable customers to train and deploy large models, run inference at scale, and process graphics-heavy workloads with low latency and... CoreWeave’s product offering includes on-demand and dedicated GPU instances, bare-metal servers, private clusters and managed services tailored for enterprise and developer use. The company emphasizes flexibility and scalability, providing support for cloud-native orchestration, containerized workflows, and integrations commonly used in AI development and media pipelines. Its platform is positioned to serve data scientists, machine learning engineers, studios performing VFX and rendering, and organizations requiring accelerated compute for simulation and analytics. Originally built on experience managing large-scale GPU deployments, CoreWeave transitioned into a specialized cloud provider focused on GPU compute and has grown by expanding data center capacity and operational tooling to meet demand from...

The company’s infrastructure is optimized for high-density GPU workloads, with an emphasis on performance, networking and storage configurations that support model training, inference and graphics rendering tasks. CoreWeave serves commercial customers in the United States and internationally across industries that include AI research, enterprise machine learning, media and entertainment, and scientific computing. The company is publicly listed on the Nasdaq under the ticker CRWV, and its offerings are positioned to address the rising demand for specialized, GPU-centric cloud capacity as organizations scale compute-intensive workloads. CoreWeave scored higher than 52% of companies evaluated by MarketBeat, and ranked 435th out of 648 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation. CoreWeave has a massive revenue backlog it must churn through.

CoreWeave doesn't generate positive cash flows right now. CoreWeave (NASDAQ: CRWV) is a critical company in the artificial intelligence (AI) infrastructure build-out. It has essentially become a cloud computing platform that is solely focused on providing its clients access to the best AI computing hardware available. This focus has led to incredible growth, and it's only getting started. CoreWeave's growth is a compelling reason to buy the stock, but there is one glaring red flag that investors can't afford to miss. Are the 56 billion reasons to buy its stock greater than the one to avoid it?

Let's take a look. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Adding around $10 billion in market capitalization in less than a week amounts to a not-too-shabby few days at the office for the recently public company CoreWeave (NASDAQ: CRWV). From May 14 to May 19, the stock gained over 28%.

Which one of these two high-flying necloud companies should you consider buying right now? CoreWeave (CRWV +5.02%) and Nebius Group (NBIS +0.90%) are two companies that have been growing at an incredible pace owing to their business model. These companies are in the business of building data centers capable of running artificial intelligence (AI) workloads and renting them out to hyperscalers, AI companies, or anyone looking to buy dedicated AI data center... Formally known as neocloud companies, both CoreWeave and Nebius have seen incredible jumps in their stock prices this year. While CoreWeave is up 84% since its initial public offering (IPO) in late March this year, Nebius stock has shot up a stunning 231% this year. But if you had to choose from one of these two neocloud stocks for your portfolio right now, which one should it be?

CoreWeave went public toward the end of March, and it was the biggest tech IPO in the U.S. since 2021. Shares of the company rose impressively over the next few months and hit a high on June 20. However, it has been all downhill for CoreWeave since then, with the stock losing over 60% of its value. CoreWeave investors got another shock recently after the company released its third-quarter results. Though it reported massive year-over-year growth of 134% in its revenue to $1.36 billion, CoreWeave had to slightly reduce its full-year guidance.

It now expects full-year revenue to land at $5.1 billion at the midpoint of its guidance range, down from the earlier estimate of $5.25 billion. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here CoreWeave (CRWV) just earned an analyst upgrade from a brokerage firm that tags that stock as “High Risk,” reflecting Wall Street's conflicted stance on the volatile cloud-computing company that has surged 160% since its... Specifically, Citi analyst Tyler Radke last Thursday upgraded CoreWeave from "Hold" to "Buy," while keeping a $160 price target, citing accelerating AI capital expenditures from major tech companies. Microsoft's (MSFT) massive spending plans should benefit CoreWeave in particular, as the tech giant represents the company's largest customer and recently announced plans to spend $30 billion in Q3, 60% above analyst expectations.

Meta (META) and Microsoft's latest earnings showed no signs of AI spending deceleration, with Meta's capex nearly doubling year-over-year while Microsoft's grew 22% to $17.1 billion. This sustained investment creates continued demand for CoreWeave's GPU-as-a-Service offerings, with Radke acknowledging that the results from Microsoft mean that Citi is “incrementally more confident about the durability of AI demand and CRWV’s position... CoreWeave's business model requires enormous capital investments to build and operate AI infrastructure, raising questions about long-term profitability. The AI infrastructure company continues burning cash while expanding capacity, with Wall Street expecting a $0.23 per share loss on $1.08 billion revenue for Q2.

Coreweave Pops 28 Should You Buy This Ai Stock Marketbeat

People Also Search

Adding Around $10 Billion In Market Capitalization In Less Than

Despite Beating Significantly On Revenue Growth Expectations, The Price Action

From Its IPO Price Of $40, The Stock Soared As

CoreWeave Reported Its First Earnings As A Public Company On

CoreWeave Went Public On March 28, 2025 And Its Shares