Nvidia just doubled down on a bet that could reshape how artificial intelligence gets built.

The chip giant made a $2 billion equity investment in CoreWeave (NASDAQ: CRWV) on January 26th, acquiring shares at $87.20 each.

The move signals Nvidia’s conviction that CoreWeave is positioned to capture outsized growth as companies race to build the data centers powering generative AI.

For investors seeking leverage to the AI buildout without owning Nvidia directly, CoreWeave offers a compelling, if risky, proxy.

CoreWeave calls itself a “neocloud,” meaning it builds and operates data centers exclusively optimized for GPU-intensive AI workloads.

Unlike AWS or Azure, which serve everything from e-commerce to banking, CoreWeave strips away the complexity.

The company leases clusters of Nvidia GPUs to OpenAI, Microsoft, Meta, and other major AI spenders.

The economics are straightforward: as AI training and inference demand explodes, CoreWeave racks up Nvidia chips and rents them out.

Nvidia’s $2 billion check isn’t charity; it’s a strategic anchor ensuring CoreWeave remains locked into Nvidia hardware while expanding capacity to support more than five gigawatts of “AI factories” by 2030.

CoreWeave stock: Why Wall Street is taking notice

The math is compelling for CoreWeave.

Hyperscalers like Amazon, Microsoft, Google, Meta, and Oracle are projected to spend over $600 billion on infrastructure in 2026, with roughly 75% earmarked for AI-specific systems.

That spending surge translates directly into demand for CoreWeave’s GPU cloud.

The company’s Q2 2025 revenue surged 207% year-over-year to $1.21 billion, and it maintains a $30 billion revenue backlog stretching years into the future.

Full-year 2025 guidance projects $5.15 billion to $5.35 billion in revenue, reflecting 175% growth.

Analysts have responded by raising price targets.

Deutsche Bank upgraded CRWV to “Buy” with a $140 price target in late January, signaling 40% upside from current levels.

The consensus among 33 analysts puts the stock at $125.70, implying 33-37% upside from $92-94 trading levels on Monday.

Morgan Stanley rates it “Equal Weight,” while Needham and Bank of America maintain “Buy” positions.

The hidden risks

But CoreWeave carries real vulnerabilities that warrant caution.

The company holds $14 billion in debt and faces liquidity pressures that may require additional capital raises at higher interest rates.

HSBC slashed its price target to just $41 in January, citing debt concerns and projecting interest costs of 9-10% through 2026.

If CoreWeave’s major customers reduce AI spending or shift to building proprietary infrastructure, utilization could plunge while debt service continues.

The competitive threat is real. Microsoft, Google, and Meta are increasingly building their own AI chips and data centers, reducing reliance on third-party providers like CoreWeave.

And unlike hyperscalers’ diversified revenues, CoreWeave’s entire business depends on the AI capex cycle holding steady.

CoreWeave benefits from tailwinds that are likely to persist through 2026: Nvidia’s backing, a $30 billion backlog, and a $600 billion hyperscaler capex boom.

But leverage matters as investors pursuing growth should weigh the stock’s upside potential against concentration risk.

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