Nvidia Guarantees CoreWeave Capacity -- A Sign of Strength or Overreach?

CoreWeave (NASDAQ: CRWV) has been one of the most unpredictable stocks on the market this year. The AI cloud infrastructure stock debuted in late March, but its IPO was undersubscribed. It was forced to lower its offering price, and Nvidia (NASDAQ: NVDA) made a significant stock purchase, helping the company go public. In the weeks that followed the IPO, CoreWeave stock traded sideways, but it then started to climb in May, surging to a peak of $187 in June, nearly five times its IPO price of $40. Since then, it fell by more than 50% before recovering some of those losses.The company's business model, setting up data centers and buying Nvidia GPUs so its customers can run intense AI workloads, is essentially brand new. Nebius Group is the only other company doing something similar, and it's still much smaller than CoreWeave.CoreWeave has already topped $1 billion in quarterly revenue, and it's growing exceptionally fast, with revenue up 206% in the second quarter. However, the company is deeply unprofitable in large part due to the high interest expense it has from the debt it's taken on to fund its data center buildouts.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool