CoreWeave (CRWV) stock got an early boost this morning, lifted by reports that Jane Street purchased 19.99 million shares of the artificial intelligence (AI) hyperscaler, equivalent to a 5.4% stake. That makes Jane Street the fourth largest investor in CRWV, according to Wednesday’s regulatory filing.
The nod from quant firm Jane Street is a much-needed boost for CoreWeave, which has collapsed by 37% from last week’s highs amid widespread selling in tech stocks. Recent market skepticism about artificial intelligence (AI) valuations, influenced by OpenAI CEO Sam Altman's comments about potential market bubbles and an MIT study showing limited returns on AI investments, has contributed to the selling pressure on CRWV - despite strong fundamental growth indicators.
H.C. Wainwright Upgrades CRWV Stock
In fact, CRWV scored an upgrade from H.C. Wainwright today, with the brokerage firm arguing that the stock’s price has now “sunk deep enough,” particularly considering that CoreWeave is pacing the industry in neocloud, which the firm considers “one of the most influential technology adoption cycles of our time.”
H.C. Wainwright lifted its rating on CRWV to “Buy” from “Neutral,” with the $180 price target implying expectations for the stock to roughly double from here.
After a wobbly start to the day, CRWV stock is up more than 1%. The stock is trading below its 21-day exponential moving average and 50-day simple moving average, but the Wall Street newcomer is testing support near the site of a 38.2% Fibonacci retracement of its all-time high and low.
CoreWeave’s Fundamental Story
CoreWeave’s Q2 2025 results showcased impressive revenue growth, with the top line tripling year-over-year to $1.21 billion - though profitability remains elusive, with a substantial net loss of $291 million, primarily due to interest expenses on its $11 billion debt load. Interest expenses reached $267 million in Q2, and are projected to increase to $350-390 million in Q3.
Along with investor concerns over the company's heavy reliance on debt financing, the concentration risk in CoreWeave's customer base is notable. Microsoft (MSFT) accounts for 71% of revenue, though this is partially offset by new customer acquisitions across AI labs, hyperscalers, and financial institutions.
More broadly, the company's strategic position in the AI infrastructure space is evidenced by its massive $30.1 billion contracted backlog and expanded partnerships, including a new $4 billion deal with OpenAI supplementing their previous $11.9 billion agreement.
CoreWeave's aggressive expansion strategy is reflected in its infrastructure growth, with active power capacity reaching 470 MW and contracted power of 2.2 GW, targeting over 900 MW by year-end 2025. Their technological advancement is demonstrated through the deployment of cutting-edge NVIDIA (NVDA) GB200 NVL72 and HGX B200 systems at scale.
The company's ambitious expansion plans, including $4.8 billion in capital expenditures in the first half of 2025, highlight both the scale of opportunity and execution risks in meeting surging AI computing demand.
Are AI Bubble Worries Overdone?
The broader AI infrastructure market context remains favorable, with industry projections suggesting growth to $223.45 billion by 2030 at a compound annual growth rate of 30.4%. Major technology companies are significantly increasing their data center capital expenditure forecasts, with Alphabet (GOOG) (GOOGL) raising its 2025 forecast to $85 billion and Meta Platforms (META) adjusting its low-end forecast to $66 billion.
Along with the new vote of confidence from Jane Street, Nvidia's increased stake to 24.3 million shares, valued at approximately $4.33 billion, provides strategic validation of CoreWeave's business model.
Moving forward, CoreWeave's future success will likely depend on its ability to balance aggressive growth plans with mounting debt costs, while maintaining its competitive position in the rapidly evolving AI infrastructure landscape. In the meantime, the new backing of a major firm like Jane Street should help to provide a sentiment boost for anxious investors.
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