Nvidia invested in CoreWeave, an AI data center company, leading to doubling of stock.

From Nasdaq: 2025-05-22 06:00:00

Nvidia (NASDAQ: NVDA) is a leading player in the AI chip market. The company not only makes chips for AI applications but also invests in other AI-related companies. Recently, Nvidia invested in CoreWeave (NASDAQ: CRWV), which operates data centers for AI applications and saw its stock double shortly after going public.

CoreWeave, backed by Nvidia, operates data centers for AI applications. Despite a disappointing IPO, the company’s stock more than doubled, reaching $107. CoreWeave recently raised its revenue guidance for the year, but concerns remain about the company’s profitability and reliance on a single customer, Microsoft.

Investors are cautious about CoreWeave’s stock after its rapid rise. While the company has strong ties to Nvidia and operates in a growing sector, the valuation may need time to adjust. CoreWeave’s latest earnings report showed increased revenue guidance but also higher capital expenditures than expected.

If you’re considering investing in CoreWeave, note that it wasn’t among the 10 stocks recently recommended by the Motley Fool Stock Advisor team. The team has a track record of identifying high-growth stocks, with a total average return of 975%. Join Stock Advisor for access to their latest recommendations and potential investment opportunities.



Read more at Nasdaq: Artificial Intelligence (AI) Chip King Nvidia Recently Piled Into a Stock That Already Doubled Since Its IPO Earlier This Year