Why CoreWeave Stock Is Skyrocketing Today

Source The Motley Fool

Shares of CoreWeave (NASDAQ: CRWV) are rising on Thursday. The company's stock is up 12% as of 1:31 p.m. ET, but was up as much as 17.1% earlier in the day. The move comes as the S&P 500 (SNPINDEX: ^GSPC) gained 1.1%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was up 2.1% on the day.

CoreWeave, an artificial intelligence (AI)-first cloud provider, saw its shares rise after Meta Platforms and Microsoft released their Q1 earnings. Both companies reiterated their commitment to AI spending.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The spending spree continues

CoreWeave builds and operates data centers specifically designed to provide its computational power to run generative AI models. The company's client list includes both Microsoft and Meta Platforms, as well as Nvidia and IBM. Microsoft confirmed it's on track to spend $80 billion this year on its AI investments, while Meta raised its expected capital expenditures by as much as $7 billion. It now expects to spend between $64 billion and $72 billion.

To be clear, these figures don't directly translate into revenue for CoreWeave, but they show that the companies most critical to CoreWeave's business are continuing to double down on AI. There is still a significant gap between the computational bandwidth these companies have for AI applications and their computational needs. That's where CoreWeave comes in.

CoreWeave has a concentration problem

Despite its recent success, I have concerns about the long-term prospects of the company. One of its biggest issues is that the vast majority of the company's revenue is derived from just a handful of clients, and a significant portion of that from Microsoft alone. This leaves it incredibly vulnerable to a change in how Microsoft operates.

And it's not as if Microsoft isn't interested in cloud computing and operating AI data centers. Microsoft Azure is one of the largest cloud providers in the world.

I would hold off on CoreWeave.

Should you invest $1,000 in CoreWeave right now?

Before you buy stock in CoreWeave, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $667,581!*

Now, it’s worth noting Stock Advisor’s total average return is 882% — a market-crushing outperformance compared to 161% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Dogecoin Flashes Multiple Bullish Flags All Pointing To $1The dream of seeing Dogecoin trade at $1 remains alive among its community of loyal investors, even as the meme coin continues to struggle below the $0.20 mark.
Author  Bitcoinist
Apr 27, Sun
The dream of seeing Dogecoin trade at $1 remains alive among its community of loyal investors, even as the meme coin continues to struggle below the $0.20 mark.
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
goTop
quote