CoreWeave Surges 1.8% Amid AI Spending Boom as Trading Volume Plummets 31% to 91st in Liquidity

CoreWeave (CRWV) rose 1.80% on August 4, 2025, with a trading volume of $0.95 billion, marking a 31.34% decline from the previous day’s volume and ranking 91st in market liquidity. The stock’s performance followed a strategic shift in analyst sentiment, as Citi upgraded its recommendation to "Buy" from "Hold," maintaining a $160 price target. The move underscored confidence in CoreWeave’s positioning amid surging AI capital expenditures by tech giants like Microsoft, which recently announced $30 billion in Q3 spending—60% above expectations. Microsoft’s dominance as CoreWeave’s largest client positions the company to benefit from ongoing demand for GPU-as-a-Service solutions.

Analysts highlighted risks tied to CoreWeave’s capital-intensive business model, noting continued cash burn amid expansion. The company faces challenges in achieving long-term profitability as tech firms increasingly develop in-house AI capabilities, potentially reducing reliance on third-party infrastructure providers. This dynamic raises questions about the sustainability of current valuation levels, particularly as Microsoft and Meta’s recent earnings reinforced AI spending trends but also signaled evolving competitive dynamics.

The acquisition of Core Scientific (CORZ) for $9 billion in stock represents a pivotal strategic move, transforming CoreWeave from a tenant to an owner of 2.3 gigawatts of power capacity across nine sites. The deal eliminates $10 billion in future lease obligations and projects $500 million in annual cost savings by 2027. By securing infrastructure-specific financing, CoreWeave aims to lower its cost of capital, enhancing its ability to scale amid rapid market growth. The integration also addresses liquidity constraints, providing a foundation for sustained operations in a capital-heavy sector.

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