Why CoreWeave Rocketed 170% in May
From Nasdaq: 2025-06-04 14:03:00
CoreWeave’s shares skyrocketed 169.5% in May, recovering from April’s slump. The company also reported its first earnings since its IPO and received increased investment from Nvidia, boosting its stock price even further.
Following a surge in stock price in June, CoreWeave announced a $7 billion data center expansion deal. However, with the current valuation at 15 times revenue outlook, caution is advised due to potential risks and high investment needs.
Investors considering CoreWeave should be aware of its circular relationship with Nvidia and the need for substantial upfront investment. While demand for AI and Nvidia chips is strong, any slowdown could impact CoreWeave’s performance. Consider all factors before investing in CoreWeave.
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