It’s a big story; last week we saw CoreWeave debut on Nasdaq. More importantly, after its debut, the company’s stock hasn’t collapsed. After a small dip, the stock eventually went up. But is the CoreWeave IPO an easy short?
The CoreWeave cloud platform is purpose-built for AI. It is also the first cloud provider with generally available Nvidia GB200 NVL72 instances. According to the company’s X profile, it is just getting started.
Familiarly known as the AI Hyperscaler™, CoreWeave announced on Thursday last week the pricing of its initial public offering of 37,5 million shares at $40 per share. The shares are trading on the Nasdaq Global Select Market since Friday last week. Morgan Stanley, JP Morgan and Goldman Sachs acted as the joint lead bookrunners for the offering. Barclays, Citigroup, MUFG, Deutsche Bank Securities, Jefferies, Mizuho, Wells Fargo Securities and BofA Securities are acting as joint bookrunners for the offering. There are also co-managers for the offering including Guggenheim Securities, M. Klein & Company, Macquarie Capital, Needham & Company, Santander, Stifel, and Galaxy Digital Partners LLC.
Why is the CoreWeave Share Price Going Up?
As of time of writing the price of CoreWeave stock is at $44 (TradingView). Following on from the recent DeepSeek story, investors might want to understand more about the financials of CoreWeave than they may have otherwise. Not to mention the constant strain on markets due to talk of tariffs.
It could be argued that CoreWeave chose a bad time to list. The Magnificent Seven and S&P 500 have not performed well so far in 2025. This may be the reason that some market commentators have called the Nasdaq debut of CoreWeave ‘muted’. Some of the reasons include how Nvidia contributed a $250 million order to help the IPO. There is more. CoreWeave signed a five-year contract worth $11.9 billion with OpenAI prior to the IPO. This reliance on Nvidia and Microsoft may startle some nervous investors. Especially as neither tech giant has performed particularly well in 2025 so far. Additionally, CoreWeave is carrying around $8 billion in debt.
With the reliance on tech partners and high debt, it’s a wonder that CoreWeave is doing so well today. One commentator on the X platform shared his concerns:
“CoreWeave isn’t some cutting-edge AI firm. It’s a crypto-to-AI pivot by ex-gas traders with no real tech IP, just access to GPUs (thanks to Nvidia) and a lot of debt.”
In a market short of good news, a company touted as the “backbone of AI” has made an impact. The question is can CoreWeave live up to its promise of being one of the best priced IPOs ever? Only time will tell.
Author: Andy Samu
See Also:
How DeepSeek Sparked a Tech Selloff in the U.S. | Disruption Banking
Should the Magnificent Seven Form Part of Your Portfolio in 2025? | Disruption Banking
