Source: Cointelegraph
Original: “After Nvidia Discloses Large Stake, Crypto Miner Turned AI Provider CoreWeave Sees Market Cap Increase by Billions”
On May 16, the stock price of AI cloud computing company CoreWeave (CRWV) surged significantly after chip giant Nvidia disclosed its substantial holdings, indicating growing interest from businesses and institutions in this newly listed company.
CRWV shares rose by as much as 26.3% in New York trading, pushing its market cap above $38 billion. According to Yahoo Finance, the trading volume was more than double the daily average.
The last trading price of the stock was around $81, up 23% on the day.
The rise in CoreWeave's stock price was triggered by Nvidia's regulatory filing, which revealed that as of the end of the first quarter, the company held $900 million worth of CRWV shares. Since March 31, assuming Nvidia has not sold any shares, the value of its holdings has more than doubled.
According to CNBC, Nvidia held 17.9 million shares at the time of CoreWeave's initial public offering (IPO).
CoreWeave's stock price has increased by over 100% since its IPO price of $40 at the end of March. During this period, its performance has significantly outpaced the Nasdaq Composite Index and the overall U.S. stock market.
Nvidia's disclosure overshadowed CoreWeave's Q1 fiscal year 2025 earnings report, which showed a 420% surge in revenue, but operating expenses also soared by 487%. Compared to the same period last year, the company's net loss widened by 143%. Its stock price fell shortly after the earnings report was released on May 14.
CoreWeave's story began in 2017 when it was an Ethereum (ETH) mining company called Atlantic Crypto. After the bear market began the following year, the company gradually moved away from the digital asset space.
By 2019, it rebranded as CoreWeave and started leveraging its GPU infrastructure to provide cloud computing services. The company then rode the wave of the AI boom and successfully executed a large-scale IPO thanks to its unique relationship with Nvidia.
CoreWeave has also attracted other major investors; Cointelegraph reported in March that OpenAI struck a $11.9 billion deal with the company to provide AI infrastructure for the massive data needs of the ChatGPT developers.
The cloud computing industry, where CoreWeave operates, has a bright outlook. According to Goldman Sachs, the total market size of the industry is expected to reach $2 trillion by 2030 as AI applications become more widespread.
Another estimate from Fortune Business Insights suggests that the global cloud AI market alone could approach $600 billion by 2032, with a compound annual growth rate of 28.5%.
Related: What is browser-based cryptocurrency mining, and how does it work?
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