Latest news with #MichaelIntrator
Yahoo
23-05-2025
- Business
- Yahoo
Analysts double price target of new AI stock backed by Nvidia
Investors have been searching for the next breakout stock following the success of names like Palantir () and Nvidia () . Now, one under-the-radar AI infrastructure firm has quietly surged onto the scene, delivering explosive growth and winning support from Nvidia and OpenAI just weeks after its IPO. That company is CoreWeave, now Nvidia's largest holding, making up more than 78% of its disclosed portfolio. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 CoreWeave Inc. () is a cloud infrastructure company specializing in GPU-accelerated computing for artificial intelligence and machine learning workloads. Founded in 2017, the company transitioned from cryptocurrency mining to providing AI-focused cloud services. On March 28, CoreWeave launched its initial public offering, pricing shares at $40 each — below its anticipated range of $47 to $55. Still, the IPO raised $1.5 billion, making it one of the largest AI-related listings since 2021. Since then, the stock is up more than 150%. Its data centers are equipped with Nvidia GPUs, and Nvidia holds approximately a 7% stake in CoreWeave. On May 14, CoreWeave reported better-than-expected revenue on Wednesday in the company's first earnings release since going public. CoreWeave reported a 420% year-over-year revenue increase to $981.6 million for the first quarter. Despite this growth, the company's net loss widened to $314.6 million from $129.2 million a year earlier, partly driven by $177 million in stock-based compensation linked to its IPO. 'Demand for our platform is robust and accelerating as AI leaders seek the highly performant AI cloud infrastructure required for the most advanced applications,' Chief Executive Officer Michael Intrator said in a statement. CoreWeave expects revenue of $4.9 billion to $5.1 billion in 2025, which implies a growth of 363% and surpasses Wall Street forecasts. It also projects capex of $20 billion to $23 billion for the year. In the first quarter, OpenAI signed a five-year deal with CoreWeave worth up to $11.9 billion. In addition, the two companies signed another $4 billion contract after the quarter ended, Intrator told CNBC. Nvidia has been invested in CoreWeave since April 2023. In the first quarter this year, Nvidia bought 24,182,460 shares after the company's IPO, according to data from WhaleWisdom based on 13F filings. Alongside CoreWeave, Nvidia's investment portfolio includes several other bets in technology and of the first quarter of 2025, Nvidia also owns shares in British semiconductor company Arm Holdings () , U.S. data center firm Applied Digital () , AI drug firm Recursion Pharmaceuticals () , Russian tech firm Yandex () , and Chinese autonomous driving company WeRide () . Nvidia's backing can send a stock soaring, but it doesn't always last. In February 2024, Nvidia disclosed a stake in SoundHound AI () , sending shares up 567% that year. But by early 2025, Nvidia revealed it had sold out completely, and SoundHound has been sliding since, down more than 50% year-to-date. Citi analysts led by Tyler Radke more than doubled the firm's price target for CoreWeave stock to $94 from $43, while reiterating a "Neutral/High Risk" rating, according to a research report on May 21. The firm said it updated the CoreWeave model following a "strong Q1 out-of-the-gate," which is "a solid start for CoreWeave as a public company.""Overall we think the print reinforces CoreWeave's high-growth status, especially with recent $4B OpenAI expansion deal, and likely assuages investor concerns around AI capex/infrastructure slowing," the analysts wrote. Citi said it sees "significant increase in near-term demand," "some new enterprise customer adoption," and "high customer concentration." The analysts raised Q2 and full-year revenue forecasts for CoreWeave to the high end of guidance, expecting strong near-term beats. They also lifted estimates for the company's interest expenses and capital spending in Q2 and full-year 2025. Still, the analysts warned of 'high risks.' More Nvidia: Will Nvidia get hit hard by AI capex risk? Analysts revise Nvidia price target on chip demand Surprising China news sends Nvidia stock tumbling "We reiterate our Neutral/High Risk rating as we'd like to see more progress on profitability and more customer diversification," the analysts added. CoreWeave closed at $100.16 on May 22, putting Citi's already-doubled $94 price target below the current price. Meanwhile, data from TipRanks shows an average target of $47.42, pointing to a potential 55% downside double price target of new AI stock backed by Nvidia first appeared on TheStreet on May 23, 2025
Miami Herald
23-05-2025
- Business
- Miami Herald
Analysts double price target of new AI stock backed by Nvidia
Investors have been searching for the next breakout stock following the success of names like Palantir (PLTR) and Nvidia (NVDA) . Now, one under-the-radar AI infrastructure firm has quietly surged onto the scene, delivering explosive growth and winning support from Nvidia and OpenAI just weeks after its IPO. That company is CoreWeave, now Nvidia's largest holding, making up more than 78% of its disclosed portfolio. Don't miss the move: Subscribe to TheStreet's free daily newsletter CoreWeave Inc. (CRWV) is a cloud infrastructure company specializing in GPU-accelerated computing for artificial intelligence and machine learning workloads. Founded in 2017, the company transitioned from cryptocurrency mining to providing AI-focused cloud services. On March 28, CoreWeave launched its initial public offering, pricing shares at $40 each - below its anticipated range of $47 to $55. Still, the IPO raised $1.5 billion, making it one of the largest AI-related listings since 2021. Since then, the stock is up more than 150%. Its data centers are equipped with Nvidia GPUs, and Nvidia holds approximately a 7% stake in CoreWeave. On May 14, CoreWeave reported better-than-expected revenue on Wednesday in the company's first earnings release since going public. CoreWeave reported a 420% year-over-year revenue increase to $981.6 million for the first quarter. Despite this growth, the company's net loss widened to $314.6 million from $129.2 million a year earlier, partly driven by $177 million in stock-based compensation linked to its IPO. "Demand for our platform is robust and accelerating as AI leaders seek the highly performant AI cloud infrastructure required for the most advanced applications," Chief Executive Officer Michael Intrator said in a statement. CoreWeave expects revenue of $4.9 billion to $5.1 billion in 2025, which implies a growth of 363% and surpasses Wall Street forecasts. It also projects capex of $20 billion to $23 billion for the year. In the first quarter, OpenAI signed a five-year deal with CoreWeave worth up to $11.9 billion. In addition, the two companies signed another $4 billion contract after the quarter ended, Intrator told CNBC. Nvidia has been invested in CoreWeave since April 2023. In the first quarter this year, Nvidia bought 24,182,460 shares after the company's IPO, according to data from WhaleWisdom based on 13F filings. Alongside CoreWeave, Nvidia's investment portfolio includes several other bets in technology and AI. Related: Veteran fund manager unveils bold Nvidia stock price target after rally As of the first quarter of 2025, Nvidia also owns shares in British semiconductor company Arm Holdings (ARM) , U.S. data center firm Applied Digital (APLD) , AI drug firm Recursion Pharmaceuticals (RXRX) , Russian tech firm Yandex (YNDX) , and Chinese autonomous driving company WeRide (WRD) . Nvidia's backing can send a stock soaring, but it doesn't always last. In February 2024, Nvidia disclosed a stake in SoundHound AI (SOUN) , sending shares up 567% that year. But by early 2025, Nvidia revealed it had sold out completely, and SoundHound has been sliding since, down more than 50% year-to-date. Citi analysts led by Tyler Radke more than doubled the firm's price target for CoreWeave stock to $94 from $43, while reiterating a "Neutral/High Risk" rating, according to a research report on May 21. The firm said it updated the CoreWeave model following a "strong Q1 out-of-the-gate," which is "a solid start for CoreWeave as a public company." Related: Billionaire Stanley Druckenmiller quintuples stake in top semiconductor stock "Overall we think the print reinforces CoreWeave's high-growth status, especially with recent $4B OpenAI expansion deal, and likely assuages investor concerns around AI capex/infrastructure slowing," the analysts wrote. Citi said it sees "significant increase in near-term demand," "some new enterprise customer adoption," and "high customer concentration." The analysts raised Q2 and full-year revenue forecasts for CoreWeave to the high end of guidance, expecting strong near-term beats. They also lifted estimates for the company's interest expenses and capital spending in Q2 and full-year 2025. Still, the analysts warned of "high risks." More Nvidia: Will Nvidia get hit hard by AI capex risk?Analysts revise Nvidia price target on chip demandSurprising China news sends Nvidia stock tumbling "We reiterate our Neutral/High Risk rating as we'd like to see more progress on profitability and more customer diversification," the analysts added. CoreWeave closed at $100.16 on May 22, putting Citi's already-doubled $94 price target below the current price. Meanwhile, data from TipRanks shows an average target of $47.42, pointing to a potential 55% downside risk. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Bloomberg
15-05-2025
- Business
- Bloomberg
Inference Use Is ‘Most Important' AI Trend: CoreWeave
CoreWeave CEO Michael Intrator discusses the company's expanded $4 billion cloud deal with OpenAI and its first earnings report since going public. He joins Caroline Hyde and Ed Ludlow on 'Bloomberg Technology.' (Source: Bloomberg)
Yahoo
15-05-2025
- Business
- Yahoo
OpenAI Grows CoreWeave Tie-Up With New $4 Billion Cloud Deal
(Bloomberg) -- CoreWeave Inc. has secured a deal worth as much as $4 billion to provide additional cloud computing capacity to artificial intelligence leader OpenAI, expanding a tie-up between the two firms. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Power-Hungry Data Centers Are Warming Homes in the Nordics Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NYC Commuters Brace for Chaos as NJ Transit Rail Strike Looms The data center builder said in a filing Thursday that OpenAI will pay the sum through 2029. CoreWeave had disclosed a $4 billion deal on its earnings call late Wednesday but did not name the party, beyond describing it as an enterprise AI company. Shares of CoreWeave rose as much as 8% in trading Thursday, reversing earlier declines. CoreWeave was up 69% through market close Wednesday after overcoming early jitters following its public market debut in March. Ahead of its initial public offering, CoreWeave announced it had entered into a five-year contract with OpenAI worth nearly $12 billion. The deal also gives OpenAI a sizeable stake in CoreWeave, Bloomberg News reported at the time. The growing OpenAI relationship could help ease CoreWeave's reliance on Microsoft Corp., which happens to be one of the ChatGPT maker's biggest backers. Microsoft was one of CoreWeave's top two customers in 2024, accounting for nearly two-thirds of overall revenue, a filing with the US Securities and Exchange Commission shows. 'The demand for the product that we deliver has been truly insatiable,' Chief Executive Officer Michael Intrator said during an interview with Bloomberg TV on Thursday. To meet that demand, CoreWeave is accelerating its investment plans. Total spending is set to reach as much as $23 billion this year, the company said. Much of that extra capacity appears to be going toward the deployment and eventual monetization of AI. 'Enterprise clients have invested enormous sums of money into the compute, into the software,' Intrator said. 'Actually turning it on and having clients use it to improve the quality of their products is by far the most important trend I watch.' That sped-up timeline may blunt profits near term. CoreWeave forecast operating income, less some items, will be $140 million to $170 million in the second quarter, compared to analyst expectations for $192 million. (Updates with shares, CEO comments beginning in fifth paragraph.) Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Why Obesity Drugs Are Getting Cheaper — and Also More Expensive As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Trump Has Already Ruined Christmas ©2025 Bloomberg L.P.
CNBC
15-05-2025
- Business
- CNBC
CoreWeave CEO defends capex plans, says company is meeting 'demand signals' from major companies
CoreWeave shares jumped more than 5% Thursday as the renter of artificial intelligence servers posted strong revenues and CEO Michael Intrator reinforced the company's plans to spend on growth. In its first earnings report since its market debut in March, CoreWeave said it expects capex of $20 billion to $23 billion for the year, topping a $4.61 billion estimate for the year from analysts surveyed by LSEG. The range included the impact of a recent OpenAI deal and other factors. Intrator further explained the heightened capital expenditures during an interview with CNBC's "Squawk on the Street" on Thursday, saying that the company is meeting "demand signals" from critical clients asking for infrastructure quicker. "The increase in the capex budget is driven by success within the company," he said. Shares of CoreWeave whipsawed post-earnings. The stock was last up about 5% after falling more than 5% earlier in the session. Some investors raised issues over the company's debt and sustainability of demand for the Nvidia-backed company, which depends on businesses renting out its AI servers powered by AI chips. Intrator told CNBC that financing remains strong and the company continues to be able to repay lenders within the term of the contracts. "They look at the contracts, they understand the contracts, they understand our business, and they continue to lend us money so that we can scale and deliver," he said. CoreWeave has accrued a growing list of major technology clients, including Microsoft and Nvidia, and said it recently inked a deal with another hyperscaler. OpenAI committed to a five-year deal totaling nearly $12 billion in March and signed an additional $4-billion deal at the end of the quarter. Remaining performance obligations came in at $14.7 billion, down from $15.1 billion at the end of 2024. But some on Wall Street raised concerns over the company's debt and the sustainability of demand. DA Davidson analyst Gil Luria downgraded shares to underperform from a neutral rating, citing concerns over the company's 12.5% interest-to-acquire assets offering a 5% return. Luria said the business is "not worth scaling" because it is meeting short-term demand spurred by "overflow capacity." "The notion that this destruction of capital is a matter of scale does not hold up for a company at a $4bn revenue run rate already operating 33 data centers," he said in a note. CoreWeave appeared to signal ongoing growth to support its higher costs, projecting $4.9 billion to $5.1 billion in revenues this year, representing 363% growth rate. Second-quarter revenues are forecast to range between $1.06 billion to $1.1 billion, versus an LSEG estimate of $986.7 million. Revenue backlog, including remaining performance obligations and other amounts recognized as revenue, rose 63% to $25.9 billion during the period. The New Jersey-based company surpassed revenue estimates for the period, posting 420% revenue growth. Revenues reached $981.6 million and topped an LSEG estimate of $853 million. CoreWeave reported a net loss of $314.6 million, which widened from $129.2 million a year earlier. That was partly tied to $177 million in stock-based compensation costs for awards in its initial public offering.
