CoreWeave Surges 7.4% Amid AI Infrastructure Surge—What’s Fueling the Rally?

• CoreWeave (CRWV) leaps to $142.13, up 7.4% intraday after announcing a $6 billion Pennsylvania data center expansion.
• The company’s 100-MW facility in Lancaster could scale to 300 MW, bolstering AI compute capacity amid sector-wide demand.
• Shares have soared 250% since March IPO, with a $9 billion acquisition of Core Scientific further fueling expansion.

The stock’s explosive move reflects a strategic bet on AI infrastructure, with today’s high of $146.75 marking new post-IPO momentum amid White House-backed tech investment initiatives.

AI Compute Demand and Strategic Expansion Drive Explosive Momentum
CoreWeave’s surge is directly tied to its $6 billion data center announcement in Pennsylvania, a project aligned with President Trump’s energy and innovation summit. The 300-MW facility expansion underscores the company’s dominance in AI infrastructure, addressing relentless demand for high-performance computing. CEO Michael Intrator emphasized scaling a 'cloud purpose-built for AI,' while the Core Scientific acquisition cuts $10B in future lease costs, further validating the bullish catalyst. The stock’s 250% post-IPO rally underscores investor confidence in its positioning as an AI hyperscaler.

Data Center Sector Lags as CoreWeave Outshines Peers
While CoreWeave soars, the broader data center sector remains muted. Sector leader Equinix (EQIX) edged up just 0.19%, reflecting sector-wide hesitancy amid rising power and cooling challenges. News like Google’s $25B data center deal in Pennsylvania and Micron’s patent infringement penalties highlight uneven momentum. CoreWeave’s outperformance underscores its unique AI-focused narrative, contrasting with peers grappling with supply chain and regulatory headwinds.

Bullish Technicals and High-Leverage Options Signal Continued Momentum
RSI: 28.12 (oversold, suggesting rebound potential)
Bollinger Bands: Current price near Middle Band ($157.59), with Upper Band at $186.03 offering resistance.
MACD: Positive histogram (-6.70) signals short-term bearish divergence.

Trading Setup: Bulls target resistance at $159.01 (30-day high), with support at $141.25. The 30-day moving average ($152.92) provides a key pivot. Consider CRWV20250725C135 calls (strike $135) for leveraged exposure—delta 0.66, gamma 0.018, theta -0.66—to capitalize on sustained momentum. For downside protection, the CRWV20250725P131 put (strike $131) offers high leverage (35.34%) with delta -0.28 and gamma 0.0156. Both contracts benefit from elevated IV (81.13% and 87.25%), though theta decay demands urgency.
Top Picks:
1. CRWV20250725C135 (Call, $135 strike): Turnover $274,074, IV 81.13%, leverage 12.34%. A $5 upside to $147.13 yields max payoff of $12.13, amplifying gains via delta exposure.
2. CRWV20250725P131 (Put, $131 strike): Turnover $66,278, IV 87.25%, leverage 35.34%. A dip to $130 triggers max payoff of $0.83, offering asymmetric risk/reward for contrarians.
Action: Aggressive bulls target the $135 call into $159 resistance; cautious players pair it with the $131 put for volatility hedging.

Backtest CoreWeave Stock Performance
The backtest of CRWV's performance following a 7% intraday increase shows a significant strategy return of 137.78%, vastly outperforming the benchmark return of -100.00%. The strategy achieved an excess return of 237.78% and a CAGR of 2265.02%, indicating substantial growth potential. However, it's important to note the high volatility, with a maximum drawdown of 0.00% and a Sharpe ratio of 16.10, suggesting a risky but potentially rewarding investment approach.

AI Infrastructure Plays Dominate—CoreWeave’s Momentum Could Go Galactic
CoreWeave’s ascent underscores investor faith in AI infrastructure, with its data center bet aligning with federal tech priorities. While sector peers like EQIX stagnate, CRWV’s 7.4% rally signals a new leadership dynamic. Watch for resistance at $159 and support at $141, with options activity hinting at a bifurcated view: bullish calls vs. cautious puts. With the White House’s AI push and hyperscaler competition heating up, this stock isn’t just rising—it’s orbiting into uncharted territory. Action: Hold the $135 call until $159 breaks; exit if $141 fails.