Nvidia Partner CoreWeave Soars 227% as Investors Flood in Amid Plans to Infiltrate Amazon and Google

Nvidia-backed CoreWeave, a top growth stock on the IBD 50 list, rents out Nvidia's AI chips to hyperscalers like Amazon and Google. Investors are pouring in, causing the stock to rocket 227%. CoreWeave's success is attributed to its partnership with Nvidia, allowing it to tap into the growing demand for AI computing resources.

CoreWeave, a rapidly growing company that rents out Nvidia's AI chips to hyperscalers like Amazon and Google, has seen its stock rocket 227% in recent months. The company's success can be attributed to its strategic partnership with Nvidia, which allows it to tap into the surging demand for AI computing resources.

CoreWeave operates on a business model similar to the "GPU Airbnb," renting out GPUs like digital real estate. This model has proven to be highly effective, with revenues quadrupling for the two leading publicly listed neocloud companies, CoreWeave and Nebius [2].

The company's growth trajectory is impressive, with revenues expected to grow 3x in CY25 to ~$5.4B, although this comes with a significant debt bill of $12B [2]. Despite the debt, CoreWeave's cash hoard of over $1.4B and debt under $200M suggest a strong financial position.

Nvidia, the global leader in AI chip manufacturing, has been significantly impacted by U.S. restrictions on AI chip exports. These restrictions have effectively closed the $50 billion Chinese market to the company, prompting a $4.5 billion inventory charge [1]. However, Nvidia is pushing ahead with AI infrastructure projects worldwide to meet soaring demand for AI workloads.

CoreWeave's partnership with Nvidia positions it well to benefit from this increased demand. The company is part of a new breed of AI cloud companies, known as neoclouds, which are gaining traction in the market. These neoclouds are offering hyperscalers an alternative to buying up Nvidia's pricey AI GPUs, allowing them to scale up/down capacity to meet demand more efficiently [2].

The overall cloud market, of which neoclouds are a part, enjoyed an AI boost in Q1, growing 25% y/y, with first-quarter revenues standing at $94B worldwide [2]. CoreWeave's strong performance in this market is reflected in its market share growth, which has seen it break into the top tier of cloud companies.

Despite the challenges posed by U.S. export restrictions, Nvidia remains committed to expanding its AI infrastructure projects globally. The company's goal is to have chips and systems "built in America within a year," with investments to bring back advanced manufacturing [1].

CoreWeave's success is a testament to the growing demand for AI computing resources and the innovative business models that are emerging to meet this demand. As the AI revolution continues, companies like CoreWeave are poised to play a significant role in shaping the future of AI infrastructure.

References:
[1] https://www.pymnts.com/earnings/2025/nvidia-takes-4-5b-inventory-charge-due-to-chip-trade-policy/
[2] https://amritaroy.substack.com/p/coreweave-and-nebius-bet-on-nvidias