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KEY TAKEAWAYS
- CoreWeave said Monday it has signed a $6.3 billion initial order with Nvidia with a condition that the AI chip star buys unsold capacity, sending shares in the cloud computing platform surging.
- As part of the deal, Nvidia is obligated to buy any unsold cloud-computing capacity through April 13, 2032, if CoreWeave’s data centers aren’t fully utilized by its own customers.
- Separately, on Monday, Deutsche Bank added CoreWeave to its Catalyst Call Buy Idea List, citing “a few positive factors” that will support revenue revisions upward over the next quarter or two.
CoreWeave (CRWV) said Monday it has signed a $6.3 billion initial order with Nvidia (NVDA) with a condition that the AI chip star buys unsold capacity, sending shares in the cloud computing platform surging.
As part of the deal, Nvidia is obligated to buy any unsold cloud-computing capacity through April 13, 2032, if CoreWeave’s data centers aren’t fully utilized by its own customers. CoreWeave made the announcement in a filing with the Securities and Exchange Commission and said the deal was struck on Sept. 9.
Nvidia has ties with CoreWeave on several fronts. Apart from being a customer, Nvidia sells its chips to CoreWeave and has a stake in the cloud platform. Apart from Nvidia, CoreWeave’s customers include Microsoft (MSFT), OpenAI, and Facebook parent Meta Platforms (META).
Deutsche Bank Adds CoreWeave to Catalyst Call Buy Idea List
Separately, on Monday, Deutsche Bank added CoreWeave to its Catalyst Call Buy Idea List, citing “a few positive factors” that will support revenue revisions upward over the next quarter or two.
CoreWeave will benefit as “spending intentions being signaled by those in industry and the scale of some of the recent contract announcements make demand for AI infrastructure appear almost insatiable and at least for the near-to-medium-term, demand significantly outstrips supply,” wrote analyst Brad Zelnick.
CoreWeave shares are rising almost 7% in intraday trading Monday and have gained more than 200% since going public in March this year in one of 2025’s hottest IPOs.
