Shares of cloud infrastructure provider CoreWeave jumped in early trading on Monday after Nvidia said it would buy $2 billion worth of the company’s stock and deepen a partnership aimed at building large-scale artificial intelligence infrastructure over the next decade.
Nvidia said it had acquired the stake at $87.20 a share, underscoring what it described as confidence in CoreWeave’s business model and growth strategy as an AI-focused cloud platform built on Nvidia technology.
CoreWeave shares rose more than 10% in premarket trading following the announcement.
The investment accompanies a broader agreement under which the two companies plan to construct up to 5 gigawatts of AI “factories” by 2030, using Nvidia’s accelerated computing platforms and operated by CoreWeave.
So-called “neocloud” providers such as CoreWeave, which supply the specialised infrastructure needed to develop, run and deploy artificial intelligence systems, have seen demand rise sharply as businesses accelerate AI adoption.
Before the latest transaction, Nvidia was CoreWeave’s third-largest shareholder, holding about 6.3% of the company, or roughly 24.3 million shares.
By acquiring an additional 23 million shares, Nvidia is close to doubling that position and will become CoreWeave’s second-largest shareholder, according to Reuters calculations based on LSEG data.
Expanding AI factory ambitions
Under the expanded collaboration, the companies said AI factories would be developed and run by CoreWeave using Nvidia’s computing platforms to meet surging customer demand for AI workloads.
Nvidia will also provide financial support to accelerate CoreWeave’s procurement of land, power and physical infrastructure needed to build the facilities.
The partnership includes plans to test and validate CoreWeave’s AI-native software and reference architecture, with the aim of integrating those offerings more closely into Nvidia’s cloud and enterprise ecosystem.
CoreWeave will deploy multiple generations of Nvidia hardware across its platform, including early adoption of upcoming computing architectures such as Rubin, Vera CPUs and BlueField storage systems.
“AI is entering its next frontier and driving the largest infrastructure buildout in human history,” said Jensen Huang, founder and CEO of NVIDIA.
“CoreWeave’s deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry. Together, we’re racing to meet extraordinary demand for NVIDIA AI factories—the foundation of the AI industrial revolution.”
CoreWeave stock performance and outlook
The announcement comes as CoreWeave shares rebound in early 2026 after a sharp correction late last year.
The stock is up more than 17% year to date and remains more than 100% above its IPO price, according to analysts, delivering strong gains for early investors despite recent volatility.
Market participants are now looking ahead to the company’s fourth-quarter earnings report, expected in mid-February, as the next major catalyst.
Analysts at MarketBeat said expectations had been lowered following the previous earnings update, potentially setting the stage for an upside surprise if progress on construction and capacity expansion is evident.
They said the key question for investors is whether CoreWeave has advanced its buildout sufficiently and secured enough capacity to meet customer demand, which could prompt a more optimistic reassessment of the stock.
Share price gains could be capped in near term, say analysts
Despite the upbeat market reaction, analysts cautioned that CoreWeave is not expected to generate profits for at least two years.
While the company’s balance sheet is currently well capitalised, sustained negative cash flow could increase the risk of future dilution if additional funding is required.
MarketBeat noted that although recent price action has been encouraging, gains could be capped in the near term.
Short interest remains relatively high, and analysts warned the stock could struggle to break through key resistance levels.
“With this in play, it is unlikely that CRWV stock will advance above critical resistance levels and may become stuck at the low end of the target range. CoreWeave’s market will top out at the $140 resistance target in this scenario,” MarketBeat analysts said.
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