What Does The Street Think About The CoreWeave, Nvidia Deal?

• Earlier on Monday, the two companies announced an expansion of their existing collaboration, with Nvidia buying $2 billion worth of CoreWeave’s Class A common stock. 
• Jefferies has a ‘Buy’ rating on CRWV shares with a price target of $120.
• Mizuho raised CoreWeave’s price target to $100 from $92, while maintaining a ‘Neutral’ rating on the shares after the announcement of the deal.

Jefferies on Monday said that the $2 billion deal between Nvidia Corp. (NVDA) and CoreWeave Inc. (CRWV) deepens the partnership of both firms and will help Nvidia push CoreWeave’s artificial intelligence factories toward more than 5 gigawatts (GW) of capacity by 2030, well above 2.9 GW at present.

Earlier on Monday, the two companies announced an expansion of their existing collaboration, with Nvidia buying $2 billion worth of CoreWeave’s Class A common stock.

Shares of CRWV climbed over 6% at the time of writing, while shares of NVDA lost about 0.6%.

Analyst Rationale

Jefferies said that Nvidia's support on land and powered shells should ease execution risk and help scaling, according to TheFly. The analyst also added that Nvidia will help take CoreWeave's SUNK and Mission Control software to market, creating a high-margin, asset-light growth avenue.

CoreWeave's stake rises to about 9% from 7%, underscoring its conviction in CoreWeave as a strategic partner, not just a reseller, Jefferies added.

The analyst has a ‘Buy’ rating on CRWV shares with a price target of $120, representing an upside of about 21%.

Meanwhile, Mizuho analyst Gregg Moskowitz raised CoreWeave’s price target to $100 from $92, while maintaining a ‘Neutral’ rating on the shares after the announcement of the deal.

The analyst said it remains "somewhat more reserved" about the magnitude of potential revenue upside for CoreWeave over the next few quarters in a highly capacity-constrained environment. However, it added that the announcement provides "incremental confidence in the longer-term trajectory," according to TheFly.

Deal Summary

As per the deal, CoreWeave will leverage Nvidia’s high-performance computing platform to design and operate AI factories, bolstered by the latter’s financial resources.

The collaboration will also integrate CoreWeave’s AI-native software, such as SUNK and Mission Control, into Nvidia’s reference architectures. Meanwhile, CoreWeave will adopt multiple generations of Nvidia technology, including Rubin, Vera CPUs, and BlueField systems.

Nvidia already holds a stake in CoreWeave and has committed to buying more than $6 billion in its services through 2032.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around CRWV stock jumped to ‘bullish’ from ‘neutral’ territory over the past 24 hours. Meanwhile, message volume jumped to ‘high’ from ‘normal’ levels.

One bullish user noted that the stock’s flow at present looked more like an AI infra re‑rating than a momentum pop, referencing the deal.

Another bullish user said the deal felt like the ‘backbone of the US AI strategy’ taking shape.

A third user predicted a price of $110 this week, while hoping for $120.

Shares of CRWV have gained over 147% in the past year. Meanwhile, NVDA shares have risen over 57% in the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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