CoreWeave (CRWV) Surges 7.1% on Earnings Anticipation and AI Infrastructure Momentum

Summary
• CoreWeave (CRWV) surges 7.1% intraday to $118.07, breaking above $115.02
• Intraday range of $115.02–$120.88 highlights aggressive buying
• Earnings on August 12 and $9B Core Scientific acquisition dominate headlines
• Turnover of 11.2M shares signals heightened institutional activity

CoreWeave’s 7.1% intraday rally reflects a confluence of earnings anticipation, strategic expansion, and sector momentum. The stock’s surge to $118.07—up from $115.48 open—underscores investor optimism ahead of Q2 results and a $9B acquisition. With AI infrastructure demand surging, CRWV’s rally aligns with broader sector trends but faces headwinds from high leverage and customer concentration.

Earnings Anticipation and Strategic Expansion Fuel CRWV's Rally
CoreWeave’s 7.1% intraday surge is driven by two key catalysts: anticipation of Q2 earnings on August 12 and the announced $9B acquisition of Core Scientific. The acquisition, aimed at vertically integrating power supply for AI infrastructure, has positioned CRWV as a strategic player in the AI cloud race. Analysts highlight the deal’s potential to enhance CRWV’s competitive edge against hyperscalers like AWS and Microsoft. Additionally, the stock’s rally coincides with elevated short-term options activity, particularly in August 15-dated contracts, indicating speculative positioning ahead of earnings.

Software - Infrastructure Sector Volatility as CRWV Outpaces MSFT
The Software - Infrastructure sector remains mixed, with Microsoft (MSFT) down 0.42% intraday despite CRWV’s 7.1% surge. CRWV’s outperformance reflects its niche focus on AI infrastructure, contrasting with broader tech stocks’ caution. While MSFT dominates cloud computing, CRWV’s aggressive expansion into AI data centers—bolstered by its Core Scientific acquisition—has attracted speculative capital. However, CRWV’s high leverage (8.60% leverage ratio in options) and customer concentration risks differentiate it from sector leaders.

Options and ETF Strategy for CRWV's Volatile Rally
• RSI: 35.02 (oversold)
• MACD: -8.90 (bearish divergence)
• 30D MA: 133.26 (above current price)
• Bollinger Bands: 96.09–145.91 (current price near lower band)

CRWV’s technicals suggest a short-term rebound after oversold RSI levels, but bearish MACD and wide Bollinger Bands indicate volatility. For options, two contracts stand out: CRWV20250815C115 and CRWV20250815P115.

CRWV20250815C115
• Code: CRWV20250815C115
• Type: Call
• Strike: $115
• Expiry: 2025-08-15
• IV: 120.67% (high volatility)
• Delta: 0.5955 (moderate sensitivity)
• Theta: -0.7623 (rapid time decay)
• Gamma: 0.0173 (high sensitivity to price moves)
• Turnover: 1.24M (liquid)
• Leverage: 11.24%
• Payoff (5% upside): $5.94/share
This call option offers high leverage and liquidity, ideal for capitalizing on a potential earnings-driven rally. The high gamma ensures responsiveness to price swings, while elevated IV reflects market uncertainty.

CRWV20250815P115
• Code: CRWV20250815P115
• Type: Put
• Strike: $115
• Expiry: 2025-08-15
• IV: 168.96% (extreme volatility)
• Delta: -0.4061 (moderate downside protection)
• Theta: -0.3999 (slower decay)
• Gamma: 0.0124 (moderate sensitivity)
• Turnover: 361K (liquid)
• Leverage: 11.00%
• Payoff (5% upside): $0.00 (out-of-the-money)
This put option provides downside protection against a post-earnings selloff, leveraging high IV and moderate delta. While it won’t profit from a rally, it hedges against volatility.

Aggressive bulls may consider CRWV20250815C115 into a breakout above $120.88, while cautious investors should pair it with CRWV20250815P115 for risk management.

Backtest CoreWeave Stock Performance
The backtest of CRWV's performance following a 7% intraday increase shows a significant strategy return of 177.61%, vastly outperforming the benchmark return of 14.48%. The strategy achieved an excess return of 163.13% and a CAGR of 4554.27%, indicating substantial growth potential. However, it came with high volatility, a maximum drawdown of 0.00%, and a Sharpe ratio of 32.58, suggesting a balanced risk-return profile.

CRWV's Earnings and Expansion: A High-Volatility Play
CoreWeave’s 7.1% rally is a high-volatility trade driven by earnings anticipation and strategic expansion. While the stock’s technicals suggest a short-term rebound, bearish MACD and wide Bollinger Bands warn of potential pullbacks. Investors should monitor the August 12 earnings report and the $9B Core Scientific acquisition’s execution. For context, Microsoft (MSFT) remains the sector leader, down 0.42% intraday, highlighting CRWV’s divergence. Aggressive traders may target a $120.88 breakout with CRWV20250815C115, but caution is warranted given CRWV’s high leverage and customer concentration risks. Watch for earnings surprises or acquisition-related news to dictate next steps.