Latest news with #Nvidia-powered
Yahoo
21-05-2025
- Business
- Yahoo
Why CoreWeave Rallied Big Yet Again Today
CoreWeave received a big target price boost from a skeptical analyst. The price hike follows the company's first earnings report last week. The company also received more interest than expected for a new debt offering. 10 stocks we like better than CoreWeave › Shares of artificial intelligence (AI) "neocloud" CoreWeave (NASDAQ: CRWV) rocketed higher another 19.2% on Monday as of 12:26 p.m. ET. The big move follows a big jump last Friday, two days after CoreWeave reported impressive first-quarter results, and Nvidia disclosed that it had increased its stake in the company. Today's move higher appears to be spurred on by two factors. One, a Wall Street analyst more than doubled his price target on the stock. Second, CoreWeave is tapping the debt markets again to fund its aggressive build-out -- and that debt offering was very oversubscribed. This morning, Citigroup analyst Tyler Radke raised his price target on CoreWeave from $43 all the way to $94, but kept his "neutral" rating on shares. This was one of those analyst upgrades that seems a bit late to the party. Obviously, Radke had been neutral on the stock at a much lower price, but given the big jump in shares last week, the analyst is readjusting after the fact. Radke wrote in his note: Shares have gone vertical ... While we'd argue a portion of the rerating is justified, given strong Azure/hyperscaler numbers and capex, we reiterate our Neutral/High Risk rating, as we'd like to see more progress on profitability and more customer diversification. CoreWeave's growth also appears set to accelerate given the second bit of news today, although also perhaps at the expense of near-term profits, as Radke mentioned. That's because the company sought another $1.5 billion of debt in order to finance its AI data center build-out, but saw such strong investor interest that it upsized the offering to $2 billion of five-year notes. While the 9.25% coupon rate on the notes is pretty high and suggests a fair amount of risk, the massive investor interest appears to be spurring more bullishness among equity investors, too. It appears the bullishness on Nvidia-powered AI infrastructure is overwhelming some of the concerns about CoreWeave at the moment, with the main concerns being the heavy use of debt to build out infrastructure; its somewhat circular relationship with Nvidia, who is both a supplier and customer; and its high concentration of customers among just a few cloud and AI giants. That was why Radke and other analysts have been somewhat skeptical of CoreWeave's story. It's a newish business model in the AI era, so investors should expect more big swings on day-to-day news items, both to the upside and downside. 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. Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Why CoreWeave Rallied Big Yet Again Today was originally published by The Motley Fool
Yahoo
12-05-2025
- Business
- Yahoo
CoreWeave's $1.5B Debt Strategy: Navigating AI Growth and Financial Challenges
CoreWeave (NASDAQ:CRWV) is making bold moves to tackle its towering $8 billion debt load just weeks after its IPO. The AI data center operator is hitting the road this week with JPMorgan (JPM), aiming to gauge investor interest in a $1.5 billion debt raise, insiders say. This high-yield bond offering could be a lifeline for CoreWeave, which has seen its stock jump by a third since its scaled-back IPO. But the clock is ticking the company faces $7.5 billion in debt payments by 2026, much of it tied to high-interest loans secured against Nvidia chips and key contracts with Microsoft. Warning! GuruFocus has detected 5 Warning Signs with CRWV. CoreWeave isn't just playing defense. It's doubling down on AI infrastructure with the acquisition of Weights & Biases, a move designed to solidify its position as a powerhouse AI Cloud Platform. The deal, backed by Evercore and Morgan Stanley, could unlock new growth paths as CoreWeave merges its Nvidia-powered data centers with Weights & Biases' AI developer platform. CEO Michael Intrator emphasized that the combination is about more than scale it's about creating a seamless AI tech stack to accelerate development while maintaining interoperability across multiple frameworks and models. Despite rocketing revenue from $16 million in 2022 to $1.9 billion last year, CoreWeave remains heavily leveraged. With Nvidia (NASDAQ:NVDA) holding a 5% stake and $250 million invested in the IPO, CoreWeave's next steps could be crucial. The company is eyeing public credit markets to refinance its debt while betting on AI's continued expansion to drive revenue growth. Whether it can balance aggressive expansion with looming debt obligations may determine its trajectory in the AI infrastructure race. This article first appeared on GuruFocus.
Yahoo
29-03-2025
- Business
- Yahoo
Down 13% to 41%, These 3 Nvidia Partners Are Raging Buys
Data center equipment maker Vertiv (NYSE: VRT), healthcare technology specialist GE HealthCare Technologies (NASDAQ:GEHC), and electrical protection and connection products company nVent Electric (NYSE: NVT) are all Nvidia collaborators, and they all focus on the AI growth opportunity. Here's why and how these stocks are great buys right now. The latest announcement of an Nvidia/GE Healthcare collaboration to "advance innovation in autonomous imaging" highlights the investment case for GE HealthCare: specifically, the company's opportunity to maximize the value of its equipment by incorporating AI into it. Combining AI with the data created by the company's imaging equipment can produce better images of patients and ultimately diagnose them to produce better outcomes. As such, the integration of AI increases the value of GE HealthCare's equipment and pharmaceutical diagnostics -- imaging agents that work in conjunction with imaging technology. The company is all-in on investing in the technology, having raised its AI-enabled authorizations from the Food and Drug Administration from 58 in 2023 to 85 in 2024. Demand weakness in China slowed growth last year, but the stock's valuation now reflects that and is trading on 17.4 times estimated 2025 earnings. The stock is a good value, with Goldman Sachs estimating the company will return to mid-single-digit revenue growth in 2026 and onward. The latest deal by nVent, to acquire Avail Infrastructure Solutions for $975 million, is part of its ongoing focus on electrical and connection products. It significantly increases its exposure to power utilities and data centers. For reference, earlier this year, nVent completed the sale of its thermal management business for $1.7 billion as part of refocusing on growth markets. The company generated 20% of its revenue from data solutions in 2024 (about $600 million), and the new acquisition (which generated revenue of $375 million over the last 12 months) will immediately increase its exposure to data centers. The products nVent sells to data centers include cable management systems, racks and cabinets, enclosures, power distribution, leak detection, and liquid cooling solutions. In a collaboration with Nvidia, nVent's liquid cooling systems are being deployed to improve the performance of data centers using Nvidia products. And you don't have to pay nosebleed valuations to buy nVent and get exposure to the AI/data center spending theme. The stock trades at 19.2 times estimated 2025 earnings, dropping to 17.3 times estimated 2026 earnings. It has a long pathway of growth for its solutions supporting the electrification of everything megatrend that encompasses investment in data centers and electrical infrastructure. Nvidia also partners with Vertiv to provide crucial power and liquid cooling technology for Nvidia-powered data centers, making Vertiv a backdoor way to play the AI revolution. The company already heavily focuses on data centers and communications, while nVent products target general electrical connections and protection as it expands into data centers and infrastructure. That focus has led to startling sales, orders, and backlog growth for Vertiv in recent years. Vertiv Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Orders growth (YoY) 11% 23% 60% 57% 17% 0% Organic sales growth (YoY) 17% 12% 8% 14% 19.2% 27% Backlog (in $ billions) $5.0 $5.5 $6.3 $7.0 $7.4 $7.2 Data source: Vertiv presentations. YoY= year over year. However, the stock has sold off recently (down 19.4% year to date) after flat year-over-year orders in the fourth quarter due to a push-out of orders in Europe. That said, management sees it as a reflection of slower decision-making around European regulatory issues rather than anything related to end market weakness. If management is right, then the current dip could be a timely buying opportunity in a long-term growth stock. As always, investors must conduct their due diligence before actually putting down money on these stocks. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $284,402!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,312!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $503,617!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE HealthCare Technologies and Nvidia. The Motley Fool has a disclosure policy. Down 13% to 41%, These 3 Nvidia Partners Are Raging Buys was originally published by The Motley Fool Sign in to access your portfolio
Bloomberg
20-03-2025
- Business
- Bloomberg
Nvidia CEO Remains Elusive in DC amid Major US Investment Announcement
Nvidia aims to spend several hundred billion dollars to procure US-made chips and electronics over the next four years. The company's latest chips and Nvidia-powered servers for data centers can now be produced at US-based factories operated by Taiwan Semiconductor Manufacturing Co. and Foxconn Technology ultimately plans to shift manufacturing onshore, and is already using TSMC's Arizona factory to help produce some of its graphics processing units. Bloomberg's Mike Shepard reports. (Source: Bloomberg)
Bloomberg
20-03-2025
- Automotive
- Bloomberg
Stock Movers: Nvidia, Five Below, Carvana
Nvidia: Nvidia Corp. aims to spend several hundred billion dollars to procure US-made chips and electronics over the next four years, the Financial Times reported. Chief Executive Officer Jensen Huang told the FT that the latest chips designed by his company, and Nvidia-powered servers for data centers, can now be produced at US-based factories operated by Taiwan Semiconductor Manufacturing Co. and Foxconn Technology Group. It marked a major step forward in supply chain resilience for the Santa Clara, California-based chipmaker, Huang added. Five Below: Five Below shares rose as much as 13% in premarket trading after the discount retailer reported fourth-quarter results that beat expectations. Still, analysts were cautious about the long-term impact of tariffs, with those at Morgan Stanley and Barclays cutting their targets. 'Until there is more clarity on the tariff front, we see a balanced risk/reward at current levels,' the analysts wrote in a note Carvana: Piper Sandler upgrades Carvana and ACV Auctions to overweight from neutral as the broker turns bullish on vehicle technology stocks, saying they can can grow despite macro unease and higher tariffs. Analyst Alexander Potter notes that 'most used car transactions don't span international borders, and demand is relatively stable, regardless of the macro'
