CoreWeave(CRWV) Soars 10.73% On $7B Deal, Nvidia Stake

CoreWeave(CRWV) surged to a record high today, with an intraday gain of 10.73%.

The strategy of buying CRWV shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years. The annualized return was 8.33%, slightly underperforming the market by 1.67 percentage points. With a final value of $152.77 per $100 invested, the strategy provided a decent, but not outstanding, cash growth. This suggests that while the strategy offered some appreciation, it may not have fully capitalized on the potential of higher market outperformance or CRWV's inherent growth.

CoreWeave's recent stock price surge can be attributed to several significant developments. One of the most notable factors is the $7-billion deal with Applied Digital. This agreement involves Applied Digital providing CoreWeave with 250 megawatts of critical IT load at its data center site in North Dakota, with the potential to expand to 400 megawatts. This deal is expected to generate approximately $7 billion in revenue over its duration, which has significantly boosted investor confidence in the company's future prospects.

Another major factor contributing to CoreWeave's stock surge was Nvidia acquiring a 7% stake in the company. This acquisition caused a sharp increase in share price, reflecting the market's positive response to the strategic partnership between the two companies. The collaboration between CoreWeave, Nvidia, and IBM has also achieved breakthrough results in the MLPerf benchmarking model using nearly 2,500 NVIDIA GB200 GPUs. This technological advancement has further boosted investor confidence in CoreWeave's capabilities and potential for growth.