CoreWeave shares jumped nearly 10% in pre-market trading on Thursday, fueled by a rally in Nvidia Corp. following the chipmaker’s blockbuster third-quarter earnings report.
The jump reflects growing investor sentiment that the Nvidia-backed AI cloud provider could become a major bet in the expanding artificial intelligence infrastructure market.
CoreWeave’s strong recent market performance
CoreWeave, which rents access to Nvidia’s powerful GPUs via its cloud computing platform, has surged 92% since its public debut in March 2025.
Despite a recent sell-off following its own Q3 earnings release on November 10, the company posted strong results that underscore demand for AI infrastructure services.
Revenue came in at $1.36 billion, beating analyst expectations of $1.29 billion, while losses narrowed to $0.22 per share, well ahead of forecasts that had anticipated a $0.57 per share loss.
Zero Egress Migration program boosts competitive edge
In addition to posting revenue growth, CoreWeave rolled out a new Zero Egress Migration program on November 13.
This innovative service allows customers to transfer large AI datasets seamlessly across competing cloud providers — including AWS, Google Cloud, IBM, Azure, and Alibaba — without paying costly egress fees.
By offering secure, managed transfers with real-time monitoring, CoreWeave positions itself as a cost-efficient and practical choice for enterprises scaling complex AI workloads.
Analyst confidence and contract backlog
Supporting CoreWeave’s outlook, H.C. Wainwright analyst Kevin Dede reaffirmed a Buy rating on the stock with a $180 price target, citing its robust fundamentals and long-term growth potential.
The company reported a backlog of $55.6 billion and performance obligations near $50 billion, driven by major clients like Meta and OpenAI.
Those sizable contracts reflect sustained demand for advanced AI data center capacity as generative AI services continue to expand rapidly.
Strategic acquisitions and infrastructure reliability
CoreWeave has also strengthened its competitive moat through strategic acquisitions, including OpenPipe, Weights & Biases, and Monolith AI, thereby enhancing its capabilities in reinforcement learning and applied machine learning applications.
The recent renewal of CoreWeave’s Platinum ClusterMAX rating signals high reliability and performance of its AI computing infrastructure.
Cautious optimism amid challenges
Despite a slight guidance reduction that led to some market nervousness, analysts remain broadly confident in CoreWeave’s trajectory.
New partnerships with NASA and U.S. government agencies add further validation to its technological leadership and growth prospects in the hyperscale cloud and AI sectors.
High-beta play with risks and alternatives
While CoreWeave’s rapid gains and strong positioning make it an attractive high-beta play in the AI cloud space, investors should weigh ongoing valuation concerns and competitive pressures.
For those seeking potentially undervalued names with less risk, other AI stocks benefiting from industry megatrends like onshoring and tariff dynamics might offer complementary opportunities.
Outlook tied closely to Nvidia’s momentum
Still, the close symbiosis with Nvidia’s AI processor dominance suggests CoreWeave could continue riding the wave of AI infrastructure investment, especially as Nvidia’s latest earnings fuel optimism in the sector for the months ahead.
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