CoreWeave Stock Soars 5.52% on Nvidia Partnership, AI Demand

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 Nvidia 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 CoreWeave, 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.