Latest news with #MikeIntrator
Yahoo
22-05-2025
- Business
- Yahoo
Artificial Intelligence (AI) Chip King Nvidia Recently Piled Into a Stock That Already Doubled Since Its IPO Earlier This Year
Nvidia has a small portfolio of companies in which it invests. Most of the company's investments are part of the broader artificial intelligence ecosystem or partner with the AI chip giant. One of Nvidia's latest investments is off to a terrific start after going public earlier this year. 10 stocks we like better than CoreWeave › Nvidia (NASDAQ: NVDA) is best known as the artificial intelligence (AI) chip king at the center of the hottest sector in the stock market over the last few years. Given that the semiconductor chips Nvidia makes help power AI applications, which could radically change the world as we know it, Nvidia is one of the premier pick-and-shovel plays in the sector. However, some may not know that Nvidia also uses its own capital to invest in publicly traded stocks or late-stage start-ups. Most of the company's investments support the AI sector or have a partnership with Nvidia. Recently, Nvidia piled into a stock that's already doubled from its initial public offering (IPO) earlier this year. Even before CoreWeave (NASDAQ: CRWV) went public at the end of March, Nvidia had been an investor and owned about 5% of the company's total shares, according to CoreWeave's prospectus. CoreWeave operates data centers specifically set up to run artificial intelligence applications. The company purchases graphics processing units (GPUs) from Nvidia, puts them in its data centers, and then essentially rents its data centers and services to companies looking to run AI applications but don't want to invest in the necessary infrastructure. Nvidia is also a customer of CoreWeave. While on CNBC, CoreWeave's CEO Mike Intrator described the relationship between the two companies as "symbiotic." CoreWeave had been one of the most anticipated IPOs of the year, trying to go public at a $35 billion valuation. However, whether due to the emergence of China's DeepSeek, which seemed to slow the meteoric AI market, or other market conditions, investors didn't buy into the hype, and CoreWeave launched at a $23 billion valuation and $40 per share. It turns out that Nvidia actually stepped in to support the IPO. In Nvidia's first-quarter 13F filing with the Securities and Exchange Commission, Nvidia reported owning close to 24.2 million shares, up from the 17.9 million shares it owned previously, according to CoreWeave's prospectus. Despite the disappointing IPO, CoreWeave more than doubled not even two months into its public life, with the stock now at $107. That includes a 19% jump on Wednesday, which appeared to be triggered by a couple of bullish actions -- Citigroup analyst Tyler Radke raised his price target from $43 to $94, and Coreweave announced it increased its private offering of senior notes by $500 million to $2 billion total. CoreWeave is undeniably a strong company in a red-hot sector of the market, so it's going to have plenty of visibility. In its recent earnings report, the company raised its revenue guidance for this year from $4.6 billion to $5 billion. However, the market's response was less enthusiastic than one might have expected because the company also raised its capital expenditures (capex) outlook well above what analysts have been forecasting. Other concerns about CoreWeave include the fact that 62% of the company's revenue in 2024 came from Microsoft, and the company isn't yet profitable. Overall, I'm neutral on the stock right now. I view the company's business and ties to Nvidia as positives but think the valuation may need time to simmer after such a strong rally in just two months. Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Citigroup is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Artificial Intelligence (AI) Chip King Nvidia Recently Piled Into a Stock That Already Doubled Since Its IPO Earlier This Year was originally published by The Motley Fool
Globe and Mail
22-05-2025
- Business
- Globe and Mail
Artificial Intelligence (AI) Chip King Nvidia Recently Piled Into a Stock That Already Doubled Since Its IPO Earlier This Year
Nvidia (NASDAQ: NVDA) is best known as the artificial intelligence (AI) chip king at the center of the hottest sector in the stock market over the last few years. Given that the semiconductor chips Nvidia makes help power AI applications, which could radically change the world as we know it, Nvidia is one of the premier pick-and-shovel plays in the sector. However, some may not know that Nvidia also uses its own capital to invest in publicly traded stocks or late-stage start-ups. Most of the company's investments support the AI sector or have a partnership with Nvidia. Recently, Nvidia piled into a stock that's already doubled from its initial public offering (IPO) earlier this year. From disappointment to quick success Even before CoreWeave (NASDAQ: CRWV) went public at the end of March, Nvidia had been an investor and owned about 5% of the company's total shares, according to CoreWeave's prospectus. CoreWeave operates data centers specifically set up to run artificial intelligence applications. The company purchases graphics processing units (GPUs) from Nvidia, puts them in its data centers, and then essentially rents its data centers and services to companies looking to run AI applications but don't want to invest in the necessary infrastructure. Nvidia is also a customer of CoreWeave. While on CNBC, CoreWeave's CEO Mike Intrator described the relationship between the two companies as "symbiotic." CoreWeave had been one of the most anticipated IPOs of the year, trying to go public at a $35 billion valuation. However, whether due to the emergence of China's DeepSeek, which seemed to slow the meteoric AI market, or other market conditions, investors didn't buy into the hype, and CoreWeave launched at a $23 billion valuation and $40 per share. It turns out that Nvidia actually stepped in to support the IPO. In Nvidia's first-quarter 13F filing with the Securities and Exchange Commission, Nvidia reported owning close to 24.2 million shares, up from the 17.9 million shares it owned previously, according to CoreWeave's prospectus. Despite the disappointing IPO, CoreWeave more than doubled not even two months into its public life, with the stock now at $107. That includes a 19% jump on Wednesday, which appeared to be triggered by a couple of bullish actions -- Citigroup analyst Tyler Radke raised his price target from $43 to $94, and Coreweave announced it increased its private offering of senior notes by $500 million to $2 billion total. Can CoreWeave continue its strong run? CoreWeave is undeniably a strong company in a red-hot sector of the market, so it's going to have plenty of visibility. In its recent earnings report, the company raised its revenue guidance for this year from $4.6 billion to $5 billion. However, the market's response was less enthusiastic than one might have expected because the company also raised its capital expenditures (capex) outlook well above what analysts have been forecasting. Other concerns about CoreWeave include the fact that 62% of the company's revenue in 2024 came from Microsoft, and the company isn't yet profitable. Overall, I'm neutral on the stock right now. I view the company's business and ties to Nvidia as positives but think the valuation may need time to simmer after such a strong rally in just two months. Should you invest $1,000 in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor 's total average return is975% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
CNBC
16-05-2025
- Business
- CNBC
CoreWeave pops 60% this week on AI growth momentum, big Nvidia stake
CoreWeave investors are having a big week. Shares of the artificial intelligence infrastructure provider are up nearly 60% gain in the past five trading days, lifting the company's market cap to about $38 billion. CoreWeave has more than doubled in value since its IPO in late March. The company got a big boost after reporting 420% revenue growth in its first earnings report as a public company on Wednesday. Guidance surpassed full-year expectations as well. A day later, CoreWeave revealed that major supplier Nvidia holds a 7% stake, up from its pre-IPO holdings. Nvidia's holdings are now worth about $2 billion after this week's pop. The outperformance makes CoreWeave a standout in a market that's seen few IPOs of late, though there are signs that more companies are poised to debut. CoreWeave was the first pure-play AI IPO, and provides investors with a way to bet on the promise of generative AI, which has boomed in popularity since the launch of OpenAI's ChatGPT in late 2022. CoreWeave said this week that OpenAI had agreed to a four-year deal worth up to $4 billion, on top of a nearly $12 billion commitment announced in March. OpenAI on Friday announced a research preview of Codex, an AI agent that can perform several software engineering tasks at once. Last week, CoreWeave CEO, Mike Intrator testified at a Senate hearing in Washington, D.C., alongside OpenAI CEO Sam Altman, Advanced Micro Devices CEO Lisa Su and Brad Smith, Microsoft's president and vice chair.
CNBC
15-05-2025
- Business
- CNBC
Nvidia owned $900 million in CoreWeave stock as of March, filing shows
After popping this week, CoreWeave shares are up about 65% since the company's IPO earlier this year. Nvidia is a big beneficiary. Nvidia owned nearly $900 million worth of shares in CoreWeave at the end of March, according to a filing from the chipmaker on Thursday. Assuming Nvidia hasn't sold any shares since then, that stake is now worth close to $1.6 billion, as CoreWeave's stock has surged in the past month. CoreWeave, which rents out access to Nvidia graphics processing units for training artificial intelligence models, went public on the Nasdaq in late March in the largest U.S. venture-backed tech IPO since 2021. Leading up to its debut, the company raised billions of dollars in debut and equity, including from key supplier Nvidia. At the time of CoreWeave's IPO prospectus, Nvidia owned 17.9 million shares shares for a stake worth around 5%. Nvidia now owns 24.2 million shares, Thursday's filing shows. As CoreWeave courted investors in its roadshow, the company issued an expected pricing range for the IPO of $47 to $55 per share. But the market was jittery after an extended IPO drought. Nvidia stepped in, offering to anchor the deal at $40 per share with a $250 million order, CNBC reported. CoreWeave ultimately sold shares to investors at $40 each, raising $1.5 billion in the process. Mike Intrator, CoreWeave's CEO, told CNBC just after the IPO that Nvidia is a "wonderful partner" and he called the relationship between the two companies "symbiotic." By Thursday, CoreWeave investors had seen substantial gains, with the stock closing at $65.77. The company late Wednesday reported 420% revenue growth from a year earlier, beating analysts' estimates, a sign that the AI boom is continuing.
Yahoo
15-05-2025
- Business
- Yahoo
CoreWeave plans up to $23bn investment to boost AI infrastructure
US-based AI cloud hosting company CoreWeave is planning to invest between $20bn and $23bn this year in AI infrastructure and data centre capacity. This move aims to cater to the increasing demand from clients, including Microsoft, reported Reuters. CoreWeave CEO Mike Intrator was cited by the news agency as saying that the company's distinctive approach to structuring its debt and capital spending is expected to take time for the market to understand. Intrator added: 'You pay back your infrastructure fully loaded and you have significant profit.' CoreWeave's projected capital expenditure for Q2 2025 ranges between $3bn and $3.5bn, significantly higher than its revenue expectations of $1.06bn to $1.1bn. Intrator said that CoreWeave is actively working to diversify its supply chains to minimise the impact of tariffs, amid US-China trade tensions. "(Our clients) are looking for really significant investment from us, and we're trying to make sure that we're doing it in a way that doesn't in any way impact our ability to secure the margins that we need in order to run our business," Intrator added. The company reported 420% in increase in revenue in the quarter ending 31 March 2025, rising from $188.7m a year earlier period. Net loss widened to $314.6m from $129.2m a year ago, driven in part by $177m in stock-based compensation tied to its initial public offering (IPO). As of 31 March 2025, CoreWeave reported a revenue backlog of $25.9bn. A significant contribution to this backlog is the five-year deal with OpenAI. Also in March, CoreWeave signed a $11.9bn deal to provide AI infrastructure to OpenAI. As part of the agreement, OpenAI agreed to invest $350m in CoreWeave through the purchase of CoreWeave stock. "CoreWeave plans up to $23bn investment to boost AI infrastructure" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
