CoreWeave, Inc. (CRWV) stock soared 6.89% during premarket trading on Tuesday, continuing its strong momentum from the previous session.
The significant price surge is primarily attributed to a major strategic announcement from its key partner, NVIDIA Corporation. NVIDIA is investing an additional $2 billion to purchase CoreWeave's Class A common shares, reflecting strong confidence in CoreWeave's business model and growth strategy as a cloud platform built on NVIDIA infrastructure. Furthermore, the two companies announced an expansion of their partnership to accelerate CoreWeave's construction of AI factories with a total capacity exceeding 5 gigawatts by 2030.
Adding to the positive sentiment, several Wall Street analysts upgraded their ratings on CoreWeave following the NVIDIA announcement. Deutsche Bank upgraded the stock to Buy from Hold with a price target of $140, citing a "solid" medium-term outlook for the artificial-intelligence cloud company. Other analysts also raised their price targets, contributing to the bullish investor sentiment.
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