Jane Street's CoreWeave Stake Bolsters AI Firm's Prospects Amid Tech Selloff

Quantitative trading firm Jane Street has acquired a 5.4% stake in artificial intelligence infrastructure company CoreWeave, owning 20 million shares. This significant investment signals strong conviction in CoreWeave's long-term prospects and could attract further interest from other hedge funds and asset managers. H.C. Wainwright analyst Kevin Dede raised his rating on CoreWeave stock to "Buy" and predicts it can double in the next 12 months, citing the firm's leadership in the neocloud space and strong revenue growth.

Title: Jane Street's Stake in CoreWeave Signals Confidence in AI Infrastructure Leader

Quantitative trading firm Jane Street has acquired a 5.4% stake in artificial intelligence infrastructure company CoreWeave, owning nearly 20 million shares. This significant investment signals strong conviction in CoreWeave's long-term prospects and could attract further interest from other hedge funds and asset managers.

CoreWeave's stock has dropped almost 40% since reporting its second-quarter earnings last week, but the investment from Jane Street has provided a brief reprieve. The stock (CRWV) rallied as much as 4.7% in morning trading on Thursday, reaching an intraday high of $95.84, before drifting lower to close down 0.8%. The early surge was a welcome, albeit brief, reprieve for investors, as CoreWeave's stock has tumbled since the company's mixed second-quarter earnings report [1].

Jane Street Group, a quantitative trading firm, has accumulated a passive stake of 19,994,532 shares in CoreWeave, amounting to a 5.4% position in the company. This places Jane Street as the fourth-largest holder of CoreWeave shares [1]. The transaction comes shortly after CoreWeave's lock-up period expired last Thursday, meaning corporate insiders are now free to sell their shares on the open market, potentially contributing to downward pressure on the stock [1].

CoreWeave reported 207% year-over-year (YoY) revenue growth in Q2 2025, reaching $1.21 billion, but saw a 18.9% post-earnings stock decline due to a $290.5 million net loss and aggressive capital expenditure plans [2]. The AI compute leader secured a $30.1 billion revenue backlog through partnerships with OpenAI, Microsoft, and Meta, including a $4 billion expansion deal with OpenAI [2].

H.C. Wainwright analyst Kevin Dede upgraded his rating on CoreWeave stock to "Buy" with a price target of $180, citing the company's strong fundamentals and long-term potential in the cloud and AI infrastructure space [3]. Dede pointed to CoreWeave's updated guidance as a key positive, with the company raising its FY25 revenue midpoint to $5.25 billion [3]. The analyst also highlighted CoreWeave's strong partnership with Nvidia (NVDA), which was the first to use the latest two generations of Nvidia AI 'superchips' [3].

The AI compute market is projected to grow at a 30%+ compound annual growth rate (CAGR) through 2030, and CoreWeave's ability to secure power, deploy cutting-edge hardware, and lock in enterprise clients positions it to capture a disproportionate share of this growth [2]. For investors with a 3–5 year horizon, CoreWeave's volatility is a feature, not a bug. The company is building the infrastructure that will power the next decade of AI innovation, and its current valuation reflects the risks of scaling at breakneck speed [2].

References
[1] https://www.morningstar.com/news/marketwatch/20250821291/coreweaves-stock-gets-a-brief-reprieve-from-the-selling-as-jane-street-announces-stake
[2] https://www.ainvest.com/news/coreweave-capitalizing-ai-compute-demand-short-term-volatility-2508/
[3] https://www.tipranks.com/news/time-to-load-up-as-top-analyst-upgrades-coreweave-stock-crwv-to-buy