Source: Cointelegraph
Original: (After Nvidia disclosed significant holdings, the cryptocurrency miner turned AI provider CoreWeave saw its market value increase by billions.)
On May 16, the stock price of AI cloud computing company CoreWeave (CRWV) surged after chip giant Nvidia disclosed that it held a significant stake, indicating growing interest from businesses and institutions in this newly listed company.
CRWV shares rose as much as 26.3% in New York trading, pushing its market value above $38 billion. According to Yahoo Finance, trading volume was more than double the daily average.
The stock's last trading price was approximately $81, up 23% on the day.
The rise in CoreWeave's stock price was triggered by Nvidia's regulatory filing, which showed that the company held $900 million worth of CRWV shares as of the end of the first quarter. Assuming Nvidia has not sold any shares since March 31, its holdings have more than doubled in value.
According to CNBC, Nvidia held 17.9 million shares at the time of CoreWeave's IPO.
CoreWeave's stock price has risen over 100% since its IPO price of $40 at the end of March. During this period, it has significantly outperformed the Nasdaq Composite Index and the overall U.S. stock market.
Nvidia's disclosure overshadowed CoreWeave's fiscal Q1 2025 earnings report, which showed a revenue surge of 420%, but operating expenses also soared by 487%. Compared to the same period last year, the company's net loss widened by 143%. Its stock price dropped shortly after the earnings report was released on May 14.
The story of CoreWeave began in 2017 when it was an Ethereum (ETH) mining company named Atlantic Crypto. After the bear market began the following year, the company gradually started to move away from the digital asset space.
By 2019, it rebranded to CoreWeave and started leveraging its GPU infrastructure to provide cloud computing services. The company then rode the wave of the AI boom and successfully executed a large-scale IPO due to its unique relationship with Nvidia.
CoreWeave has also attracted other major investors. Cointelegraph reported in March that OpenAI reached a $11.9 billion deal with the company to provide AI infrastructure for the massive data demands of ChatGPT developers.
The cloud computing industry that CoreWeave operates in has a bright future, with Goldman Sachs predicting that the total market size of the industry will reach $2 trillion by 2030 as AI applications become more widespread.
Another estimate from Fortune Business Insights suggests that the global cloud AI market alone could approach $600 billion by 2032, with a compound annual growth rate of 28.5%.
Related: What is browser-based cryptocurrency mining and how does it work?
