CoreWeave Stock Soars Amid AI Boom: What’s Next for CRWV?

The AI trend that has swept Wall Street since 2023 continues to add new success stories, and the most essential news in the sky is now the meteoric emergence of CoreWeave. In early trading on August 27, 2025, the shares of CoreWeave (NASDAQ: CRWV) increased by more than 5% as Cantor Fitzgerald initiated coverage with an Overweight rating and price target of $116.

That move also put CoreWeave into the limelight, indicating that the battle to overcome the trillion-dollar AI infrastructure economy was at stake. Cantor had not only discussed a short-term expansion but also the role of CoreWeave in a generational shift of faster computing and AI-selected business applications.

Despite Nvidia (NASDAQ: NVDA) remaining the unquestionable leader in the hardware market during the same period, CoreWeave is also considered a critical partner in delivering the computing power needed to enable the massive humanization of AI. The firm is making it the backbone of industries, training and inference workloads through its AI-centric and hyperscale cloud platform.

This article examines the recent surge in CoreWeave’s stock, its partnership with Nvidia, Cantor’s trillion-dollar AI potential vision, and what the future may hold for investors who bet on this young and ambitious competitor.

How CoreWeave Became a Force in AI

CoreWeave was established in 2017 as a small-scale Ethereum mining farm and has since grown to become one of the world’s largest AI-focused cloud providers. The company is headquartered in New Jersey and has expanded its GPU-powered cloud infrastructure to handle the soaring demand of startups, enterprises, and research institutions operating on large language models (LLMs), generative AI applications, and scientific computing.

The company experienced a surge in 2023 and 2024, during the historic boom triggered by ChatGPT from OpenAI and the competitive rush among businesses to incorporate AI into their processes. 

In April 2024, CoreWeave raised a total of $7.5 billion, including investments from Blackstone, Magnetar, and Coatue, in its second-largest debt round in AI infrastructure. This war chest enabled the company to build vast data center capacity in the United States, according to Forbes.

In July 2025, its IPO became one of the most anticipated tech offerings in recent years. CoreWeave valued its stock at $51 and raised over $2.3 billion in a short timeframe, catching the eye of the institutional investors. 

Since the company’s stock has been fluctuating with the rest of the AI trade, it has gained new momentum over the past few weeks, as analysts have revisited the long-term potential of the company.

The AI Spending Boom

CoreWeave could not have gotten a better time to expand. International investments in generative AI and infrastructure are increasing at new levels. IDC states that global AI expenditure will increase to $512 billion in 2027, as compared to 2024. 

Hyperscale cloud providers, as well as AI-specialized services such as CoreWeave, will capture a growing portion of this spending as companies seek solutions ready-made to train and deploy AI models.

Besides, the need is not limited to model training only anymore. Analysts have observed a significant shift toward inference workloads, which involve the real-time execution of AI models in customer-facing products, enterprise software, and consumer applications. Inference is data-intensive and needs low-latency and scalable clusters of GPUs, which vendors such as CoreWeave are uniquely designed to offer.

This change implies that CoreWeave would not only gain when training large models at firms developing new AI frameworks, but also have repeat business as AI penetrates other markets such as the financial sector, healthcare, manufacturing, and entertainment.

The Cantor Fitzgerald Bet

The initiation of the coverage by Cantor Fitzgerald this week has plunged CoreWeave into the center of the artificial intelligence discussion on Wall Street. 

According to the report that they released on August 27, they are giving a number of reasons as to why their Overweight rating and their price target of $116 is almost a 40% premium over the current share price of the company, which is in the mid-single digits.

Cantor analysts believe that the opportunity lies in the fact that the company is at the heart of the AI buildout. They noted that CoreWeave:

• The majority of its revenue is generated by massive model training.
• It is poised to take an increasing portion of the inference workloads, potentially overtaking training in the market by 2026.
• Cooperates very closely with Nvidia, gaining access to a limited supply of GPUs.
• An early-mover advantage in AI-specific infrastructure, relative to traditional cloud players.

Most crucially, Cantor pegged the long-term prospects of CoreWeave to the vision of Nvidia of a $1 trillion installed base of accelerated computing and equivalent possibilities in AI factories, special-purpose facilities in which companies operate massive AI workflows.

This projection is based on statements made by Nvidia CEO Jensen Huang earlier this year, in which he outlined the shift in the world to a new type of computing, likening it to the Industrial Revolution. 

In this world, CoreWeave does not need to compete with Amazon Web Services or Microsoft Azure in general-purpose computing; rather, it aims to establish a niche as a GPU-powered, AI-first infrastructure.

Nvidia’s Quiet but Crucial Role

Although the rise in CoreWeave’s operations is remarkable, it would not have been achieved without its collaboration with Nvidia. Not only has the chipmaker, which is now worth more than $4.357 trillion as of August 2025, been able to provide GPUs, but it has also acquired 5.1% of equity in CoreWeave after its IPO.

It is a vital advantage to CoreWeave in this relationship. CoreWeave has established a significant market presence in a global context, where customer demand for Nvidia GPUs, particularly the H200 Tensor Cores GPUs and the forthcoming Blackwell architecture, exceeds the supply.

As both a supplier and a customer, Nvidia has a direct contribution to a significant portion of CoreWeave’s revenue. With the rapid adoption of AI, analysts are optimistic that this alignment will continue to position CoreWeave as a leader in offering scalable GPU clusters at lower costs and with shorter turnaround times.

Competition Heats Up

CoreWeave is facing high levels of competition, despite its numerous strengths. All the above cloud giants, like Amazon, Google, and Microsoft, have invested billions in AI infrastructure, with Microsoft being the first to commit its resources to the field through its collaboration with OpenAI.

Dedicated AI workload, AWS by itself is spending $10 billion on building data centers dedicated to AI workloads, and Google Cloud has already deployed dedicated AI supercomputers on behalf of its customers.

The clear advantage of CoreWeave is that it specializes in AI and GPUs and is not diversified in a variety of cloud workloads. This specialization has enabled the company to operate at a faster pace and allocate resources most effectively, allowing companies to develop state-of-the-art AI systems. It is, however, yet to be determined whether it can survive the big three over time.

Financial Performance Post IPO

The initial quarterly report from CoreWeave, a publicly traded company, published earlier this month, had a lot to digest.

Metric	Q2 2025 Value	Year-on-Year Change	Notes
Revenue	$682 million	+145%	Revenue growth driven by strong AI demand
Net Loss	$211 million	Reduced from $315 million	Reflects better operating leverage
Gross Margin	32%	Improved	Enhanced by economies of scale and pricing in the training market

The company has not yet become profitable, but there is an improvement in its unit economics. Analysts believe that CoreWeave will break even in late 2027, assuming sustained growth is achieved as forecasted; however, significant capital expenditures are still required for data center expansion.

Risks on the Horizon

The future cannot be complete without consideration of risks. For CoreWeave, these include:

• Execution issues: Rapid scaling is not cheap, and resource mismanagement may undermine the margins.
• Customer concentration: The company depends excessively on a few large AI clients to its disadvantage.
• Competition: The cloud giants may reduce prices or develop dedicated GPU clouds internally.
• Supply Chain Dependence: CoreWeave will be prone to supply shocks and be affected by pricing risks due to being overreliant on Nvidia.
• Regulation: Worldwide, governments have been scrutinizing AI infrastructure on grounds of energy utilization, morality, and antitrust.

What the Future Holds?

The volatility is reflective of a larger trend in AI stocks, in which long-term opportunity-related optimism is met with near-term execution risk.

In the future, the most significant swing factors of CoreWeave will be:

• The global pace of adoption of inference workloads.
• Expansion of data center footprint beyond the U.S. to Europe and Asia.
• Management of capital intensity as it proceeds to break-even.
• Maintaining its strategic focus on Nvidia in response to the deployment of new GPUs.

Assuming the perspective stated by Cantor is correct, and the investment by the AI infrastructure reaches the trillion-dollar category, CoreWeave may become one of the iconic brands in the sector within several decades.

It is a high-stakes, high-reward gamble, volatile to investors, but backed with one of the most powerful macro trends of the 21st century.

Final Thoughts

CoreWeave demonstrates the shift in computing business structure as the world transitions from CPUs to GPUs, from general-purpose cloud computing to AI-specialized infrastructure.

Cantor Fitzgerald, when it coined the bullish bell, demonstrates the vast potential that is available, but it also shows that such an intensive business is challenging to grow, particularly in terms of capital requirements. CoreWeave has been at the intersection of some of the most potent technological trends of recent years: the rise of AI, the resurgence of Nvidia, and the revolution in cloud computing.

Should it succeed, CoreWeave might be more than just another AI startup on the hype train, it could be one of the flagship digital utilities of the new economy. Nevertheless, at this moment, it is a thrilling and unpredictable future for this young disruptor, as investors are frantically seeking its stock.