Nvidia's Massive Bet on CoreWeave: Analysts Weigh AI Cloud Giant's Prospects Ahead of Earnings
In the high-stakes world of artificial intelligence, Nvidia's influence extends far beyond its dominant chip designs. The company's strategic investments have become a powerful market signal, and its largest disclosed holding—cloud infrastructure provider CoreWeave—is now under intense scrutiny as it approaches a pivotal earnings report.
According to recent filings, CoreWeave (CRWV) constituted a staggering 86.4% of Nvidia's investment portfolio by the end of Q3 2025. The relationship deepened in late January when the two companies announced an expanded partnership to construct over five gigawatts of AI-dedicated data centers, or "AI factories," by 2030. Nvidia has invested approximately $2 billion in CoreWeave stock at an average price of $87.20 per share.
"AI is entering its next frontier and driving the largest infrastructure buildout in human history," Nvidia CEO Jensen Huang stated in the joint announcement.
CoreWeave, which provides GPU-powered cloud computing for AI workloads to clients like Google and Microsoft, has seen its shares surge roughly 139% since its March 2025 IPO. The stock is up 30% year-to-date, fueled by the expanded Nvidia alliance.
However, the ride has been volatile. The stock retreated about 30% from October highs following reports of supply constraints, project delays, and concerns over its reliance on high-interest debt to finance its Nvidia chip purchases. Legal challenges added pressure: on January 30, law firm Bleichmar Fonti & Auld filed a lawsuit alleging CoreWeave overstated its capacity and concealed construction delays, sending shares down 6.4%.
Ahead of the mid-February earnings release, analyst opinions are mixed but turning more constructive. Deutsche Bank upgraded CoreWeave to "Buy" with a $140 price target, citing a "solid" medium-term outlook and potential for 2026 revenue to move "materially higher" if execution meets plans.
"The key question is execution," says David Chen, a portfolio manager at Horizon Tech Capital. "The demand story is undeniable, but the capital intensity and operational scale required are immense. They have Nvidia's backing, but now they must deliver on these mega-projects."
More skeptical is Rebecca Vance, an independent market analyst known for her blunt commentary. "This is peak hype," she argues. "Nvidia's investment is being read as a guarantee, but it's also a way to lock in a primary customer for their chips. CoreWeave is leveraged, facing lawsuits, and its guidance has already disappointed. The valuation seems to discount perfection."
From a technical perspective, veteran trader Stephen Guilfoyle notes the stock is emerging from a "double bottom" pattern. He advises watching the 200-day moving average as a key decision point for investors.
CoreWeave's previous quarterly report showed robust growth—Q3 revenue of $1.36 billion, up 134% year-over-year—but its full-year 2025 revenue forecast of $5.05-$5.15 billion fell short of consensus. The upcoming report will be critical in assessing whether operational momentum can outweigh the mounting challenges.
This analysis is based on reporting from TheStreet and other financial sources.