CoreWeave Stock Climbs Nearly 8% After Disclosing $6.3 Billion Nvidia Order
Shares of CoreWeave, a cloud infrastructure provider specializing in artificial intelligence workloads, surged almost 8% on Monday following the announcement of a substantial order from Nvidia valued at $6.3 billion.
The deal, detailed in a recent filing, commits Nvidia to purchasing any unsold capacity from CoreWeave through April 2032, effectively guaranteeing demand for CoreWeave’s GPU resources over the coming years. The company plans to release the full agreement alongside its third-quarter financial results.
A CoreWeave spokesperson emphasized that the contract reflects the company’s integral role in driving AI innovation globally, highlighting the scale and trust embedded in the partnership with Nvidia.
Deepening Ties Between CoreWeave and Nvidia
CoreWeave’s business model centers on acquiring Nvidia graphics processing units (GPUs) in large volumes, which it then leases to clients requiring extensive compute power for AI applications. Nvidia currently holds approximately 7% of CoreWeave’s Class A shares, underscoring the strategic relationship between the two companies.
Since its IPO in March 2025, CoreWeave’s CEO Mike Intrator has openly acknowledged close communication with Nvidia CEO Jensen Huang, signaling a collaborative approach to meeting escalating AI infrastructure demands.
CoreWeave’s reliance on Nvidia hardware is significant; its IPO prospectus noted the company’s dependence on a limited supplier base, with all GPUs in use sourced from Nvidia. This dependency mirrors trends among major cloud providers like Amazon, Google, Microsoft, and Oracle, all of whom utilize Nvidia chips to power their AI services.
Strong Revenue Growth Amid Continued Losses
CoreWeave reported second-quarter revenue of $1.21 billion, representing a 207% increase compared to the same period last year. Despite this rapid growth, the company posted a net loss of $290.5 million during the quarter, reflecting ongoing investments in scaling infrastructure.
Notably, CoreWeave has secured significant contracts beyond Nvidia, including an $11.9 billion, five-year agreement with OpenAI earlier this year, further cementing its position in the AI cloud market.
Market Valuation and Outlook
Following Monday’s stock rally, CoreWeave’s shares have tripled in value since its IPO, pushing the company’s market capitalization above $58 billion. The sizeable Nvidia order and robust revenue growth underscore CoreWeave’s expanding role as a critical infrastructure provider in the rapidly evolving AI sector.
Investors will be closely watching the company’s upcoming third-quarter financial results and the detailed terms of the Nvidia agreement to assess sustainability and profitability prospects amid intense competition and capital expenditure demands.
FinOracleAI — Market View
CoreWeave’s disclosure of a $6.3 billion order from Nvidia signals strong underlying demand for AI cloud infrastructure, which should bolster investor confidence in the company’s growth trajectory. The long-term purchase commitment reduces sales risk, though the company’s continued net losses highlight ongoing operational challenges. Market participants should monitor CoreWeave’s ability to convert revenue growth into profitability and the evolving competitive landscape among AI infrastructure providers.
Impact: positive
