CoreWeave stock jumped Tuesday amid an expanded artificial intelligence cloud computing agreement with Meta Platforms. CoreWeave's stellar customer list also includes Microsoft, OpenAI and Nvidia.
The Meta deal has an estimated value of $14.2 billion. The contract will run through 2031, according to a regulatory filing. On the stock market today, CoreWeave stock popped more than 12% to 137.90 in midday trading. With Tuesday's gain, CoreWeave stock has advanced 234% in 2025.
A cloud computing services provider, CoreWeave rents out servers equipped with Nvidia AI accelerators. Other new AI cloud infrastructure providers include Nebius, Lambda, Crusoe and Nscale. Nebius stock rose over 2% to 112.52 on Tuesday. Lambda is expected to launch an initial public offering.
CoreWeave's data centers are designed from scratch for crunching AI workloads. Nvidia owns a 7% stake in CoreWeave and is a strategic partner.
RPO Key Metric For Cloud Companies
Cloud service providers like CoreWeave use a financial metric called remaining performance obligations. RPO represents total revenue a company expects to recognize in the future from customer contracts that have not yet been fulfilled. Cloud firms can only recognize revenue as they deliver services and build out new data centers
CoreWeave's RPO stood at $30.1 billion as of June 30, up 86% from a year earlier.
Also, CoreWeave in June announced a deal to acquire Core Scientific in an all-stock transaction initially valued at $9 billion.
CoreWeave customers also include AI model builders Cohere and Mistral. Meanwhile, Evercore ISI on Tuesday initiated coverage of CoreWeave stock with an outperform rating.
Analyst Amit Daryanani expects CoreWeave to sign up corporate clients as well as tech companies.
"CoreWeave is uniquely positioned to be the "infrastructure-as-a-service" provider for not just AI-centric customers, but also for enterprises looking to build and deploy AI applications," Daryanani said in a report.
While some analysts project a big AI market opportunity for CoreWeave, others fret about customer concentration and high debt.
CoreWeave reported a higher-than-expected second quarter loss while revenue beat Wall Street estimates amid surging artificial intelligence compute demand.
CoreWeave Stock Technical Ratings
The company reported Q2 earnings after the market close on Tuesday. CoreWeave said in the June quarter it posted a loss of 60 cents per share versus a $1.62 per share loss a year earlier. Revenue rose 206% to $1.213 billion, the company said. Wall Street analysts predicted a 52-cent loss for CoreWeave stock on revenue of $1.082 billion.
Meanwhile, CoreWeave stock owns a Composite Rating of 60 out of a best possible 99, according to IBD Stock Checkup. Also, CoreWeave stock has a relatively small float, making it more volatile. The Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths.
Meanwhile, CoreWeave stock holds an Accumulation/Distribution Rating of A-minus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
Additionally, CoreWeave is among the top AI stocks to watch. CoreWeave was founded as a cryptocurrency miner in 2017 before its move into cloud computing services.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, quantum computing, cybersecurity and cloud computing.
