New York, Jan 27, 2026, 10:45 EST — Regular session
- CoreWeave shares climbed roughly 7% in early trading, building on Monday’s surge following Nvidia’s announcement of a $2 billion equity investment.
- A U.S. filing revealed a private placement of 22.9 million shares priced at $87.20 each.
- Traders are closely tracking if new funding and analyst upgrades will actually speed up data-center construction and stabilize financing.
CoreWeave shares climbed roughly 7%, hitting $105.21 on Tuesday, driven by continued investor interest after Nvidia injected an additional $2 billion into the AI cloud company. Nvidia’s stock gained about 1.4%.
This deal is significant because CoreWeave occupies a critical spot in the market’s key question: can AI data center investment keep climbing without hitting a funding wall? It’s real cash on the table, not just talk—and Nvidia’s backing is stamped all over it.
It also draws CoreWeave further into Nvidia’s sphere just as power, land, and construction schedules gain weight alongside chips. For traders, the pressing issue remains execution.
CoreWeave disclosed a private placement sale of 22,935,780 Class A shares to Nvidia for $87.20 each, raising $2 billion in cash. The transaction was a direct share sale to Nvidia, not a public offering. (SEC)
Nvidia and CoreWeave announced a deeper partnership aimed at accelerating CoreWeave’s plan to build over 5 gigawatts of “AI factories” by 2030 — massive data centers for training and running AI models. CoreWeave intends to roll out Nvidia’s Rubin platform, Vera CPUs, and BlueField storage systems early in the process. Nvidia CEO Jensen Huang called it the “largest infrastructure buildout” to date, while CoreWeave CEO Michael Intrator emphasized that AI excels when “software, infrastructure and operations” are developed in harmony. (NVIDIA Newsroom)
Jefferies analyst Brent Thill stuck with a Buy rating, pegging Nvidia’s price target at $120. He highlighted that Nvidia’s backing on “land and powered shells” might lower execution risks and pave the way for “high-margin, asset-light” growth in software. Meanwhile, Investing.com noted that Deutsche Bank upgraded CoreWeave to Buy, projecting Nvidia’s stake to climb to around 9%. (Investing)
CoreWeave has become a focal point in the “AI bubble” conversation after its shares dropped late last year amid doubts over how its data-center expansion would be funded. Investopedia pointed out that CoreWeave doesn’t have the deep pockets of hyperscalers like Microsoft and Alphabet. Critics have likened vendor-backed AI deals to the kind of financing that fueled the dot-com boom’s overexpansion. (Investopedia)
But the risk hasn’t disappeared. Critics highlight “circular financing” — where a vendor loans money to a customer who then uses it to buy the vendor’s products — as a potential problem if AI demand fades or capital markets clamp down.
Huang brushed off the notion as “ridiculous,” Business Insider reported, amid rising questions over how chipmakers and AI infrastructure companies finance their growth.
CoreWeave still needs to convert the cash into operational sites on time, which involves securing land, power, and building capacity at scale. Any delays or cost overruns could quickly become a major issue, especially with the stock now trading significantly above Nvidia’s acquisition price.
CoreWeave’s upcoming earnings report is the next key event. Nasdaq’s earnings calendar shows the company estimated to report on Feb. 9. This will offer investors fresh insight into capital expenditure, contracted capacity, and funding requirements following the Nvidia deal. (Nasdaq)
