CoreWeave Stock Soars 5.52% on Nvidia Partnership, AI Demand

Before the BellWednesday, Jun 4, 2025 4:22 am ET
1min read

CoreWeave's stock surged 5.52% in pre-market trading on June 4, 2025, reflecting growing investor interest in the company's strategic partnerships and market position.

CoreWeave's relationship with

has been described as "very unusual" by analysts, suggesting a strategic alignment that could benefit both companies as CoreWeave's stature grows. This partnership is seen as a key factor in CoreWeave's recent stock performance, with Nvidia owning 7% of the company and standing to gain from CoreWeave's AI computing services.

Applied Digital Corporation announced a multibillion-dollar contract with

, leasing 250 megawatts of power capacity to CoreWeave at its datacenter campus in Ellendale, North Dakota. This long-term agreement is expected to generate approximately $7 billion in revenue over 15 years, providing a stable income stream for Applied Digital and positioning CoreWeave as a major player in the AI sector.

CoreWeave's stock has seen significant gains, with shares rocketing more than 20% in a single trading session. This rally is part of a broader trend in AI infrastructure stocks, driven by the increasing demand for AI-specific data center space and high-performance computing resources. However, some analysts caution that CoreWeave's fundamentals, such as soaring debt and rising interest expenses, may pose risks to its long-term growth.