After yesterday's monster rally, the S&P 500 is down about 19 points at the moment. The SPDR S&P 500 ETF ( SPY) is also down about $1.82. Dow futures are up about 19, with the NASDAQ down about 116, especially with Nvidia ( NASDAQ: NVDA) and CoreWeave ( NASDAQ: CRWV) under pressure. Nvidia is down a few points in premarket after SoftBank sold its entire stake in the chipmaker for about $5 billion.
CoreWeave started life in 2017 as Atlantic Crypto, mining Ethereum with racks of GPUs, but the real acceleration hit in 2024, driven by deals with AI labs and enterprises needing scalable compute without building their own data centers. Revenue jumped from $229 million in 2023 to $1.9 billion. The March IPO priced at $40 per share but debuted flat at $23 billion valuation amid market jitters. Shares bottomed at $33 in April before rocketing 322% on AI hype, peaking at $187 per share in June.
Shares are jumping 5% in morning trading today, approaching $120 per share, fueled by blockbuster news of a $6.3 billion deal with Nvidia ( NASDAQ:NVDA ). The agreement, signed under their existing master services pact, commits the chip giant to snapping up any unsold cloud capacity from CoreWeave through April 2032. This backstop ensures steady revenue amid soaring AI demand, highlighting CoreWeave's pivotal role in powering next-gen computing.
