- CoreWeave (CRWV) stock surged 17% on Thursday, reaching an intraday high of $48.35, as Microsoft’s 33% cloud revenue growth and Meta’s increased 2025 capital expenditure forecast helped ease tariff-related concerns..
- Microsoft, contributing 62% of CoreWeave’s 2024 revenue, and a $11.9 billion OpenAI deal over five years highlight CoreWeave’s critical role in AI infrastructure, with its first earnings due May 14.
CoreWeave Inc. (CRWV) stock surged 10.46% to $45.62 in late Thursday trading, reaching an intraday high of $48.35, driven by robust cloud spending commitments from key clients Microsoft (MSFT) and Meta (META), which alleviated concerns about potential cutbacks amid President Donald Trump’s tariff announcements. Microsoft, accounting for 62% of CoreWeave’s 2024 revenue, reported a 33% increase in Azure and cloud services revenue, surpassing expectations, while finance chief Amy Hood affirmed capital expenditure growth for the 2026 fiscal year, albeit at a slower pace. Meta, another major CoreWeave customer, raised its 2025 capital expenditure forecast, signaling sustained investment in artificial intelligence infrastructure despite earlier fears of tariff-related disruptions.
The cloud infrastructure provider, which began in cryptocurrency mining in 2017 before pivoting to cloud services in 2019, has become a critical partner for tech giants, supplying Nvidia (NVDA) graphics processing units (GPUs) to support AI-driven workloads. Microsoft’s reliance on CoreWeave intensified in 2023 following the rapid rise of OpenAI’s ChatGPT, which depends on Microsoft’s cloud capacity, while a March deal with OpenAI, valued at $11.9 billion over five years, is expected to reduce Microsoft’s share of CoreWeave’s future contract revenue to below half. CoreWeave’s stock, now trading nearly $6 above its IPO price, has seen its sharpest gain since April 2, reflecting market optimism about its role in the AI ecosystem, even as companies like Klarna and StubHub delayed IPOs due to tariff uncertainties.
Microsoft’s finance leases, which include access to CoreWeave’s infrastructure, stood at $94.8 billion as of March 31, down from $109 million two quarters earlier, indicating adjustments in its data center strategy. Despite reports of paused or slowed projects, CEO Satya Nadella emphasized ongoing flexibility in Microsoft’s buildout plans, dismissing concerns about significant retrenchment. As CoreWeave prepares to release its first earnings report as a public company on May 14, its ability to capitalize on the AI infrastructure boom, supported by Nvidia GPUs and strategic partnerships, positions it as a key player in a competitive cloud market alongside giants and smaller operators like Lambda. The company’s performance underscores the resilience of AI-driven demand, even in a volatile economic and policy environment.
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