Coreweave approaches meme stock as CRWV trades at all-time high

Coreweave (CRWV) traded near an all-time peak of $163.10, after a relentless climb in the past two months. The stock gained up to 500% in the past two months, raising fears of an overinflated valuation. 

Coreweave (CRWV) continues to gain and set new price records, trading at $163.10. The company, which was supported by Nvidia during its recent IPO and depends on Nvidia’s chips for its main business, is at the center of AI growth and demand for high-powered computation. 

The current AI hype and demand for GPUs and data centers were enough to consider the company. Jensen Huang’s investment of $250M was also seen as a green light to invest in the company. 

Huang’s share of CRWV expanded to $3.1B in Q2, provided he never sold any shares. The CoreWeave rally is still a drop in the bucket compared to Nvidia’s $3.5T valuation, though the relationship between the two companies may be seen as the potential for an even higher price range. 

Coreweave flirts with meme stock status

Despite the fundamental support and demand for AI computation, CRWV started raising suspicions that it is following GameStop’s playbook and turning into a meme stock. Investor Jim Cramer has been calling CRWV a “meme stock,” sparking fears of cutting the recent rally short. 

There may not be enough money from meme people to keep chasing coreweave without dumping some palantir. I think that's what happened today.

— Jim Cramer (@jimcramer) June 4, 2025

Despite Cramer’s verdict, CoreWeave has shown some signs of repeating the GameStop short squeeze and irrational trading if traders are keen on holding without taking profits. 

CRWV shares were gaining traction on r/wallstreetbets, with signs of high-risk buying. The two-month rally had episodes of trading similar to meme stocks with risky bets expecting a high payout. 

In May, CRWV also showed some signs of a short squeeze, potentially leading to an uncontrollable rally if holders refuse to sell. Borrow prices increased for the stock, indicating that there may be funds shorting the shares following the two-month rally.

In the past three days, analysts warned that up to 45% of CRWV shares in circulation were shorted, up from 18% just a week before that. 

In the past week, there were no failures to deliver CRWV shares, though the past two months showed multiple days of failure, with a record in April. CRWV anticipates a rally as high as $200, so the short positions are still not betting on an imminent price reversal.

At this point, CRWV is closely watched for starting an irrational short squeeze with accelerated buying, for an even more rapid hike far beyond fundamentals.

Crypto insiders have also watched CoreWeave turn into an AI favorite, often comparing its price rally to meme tokens. The company started its computation journey with Ethereum mining in 2017, only to see its GPU run idle during the 2018 bear market. 

Later, CoreWeave rebranded and pivoted to computation centers. In 2025, the company announced a $12B contract with OpenAI for securing data centers and reliable computation. The long-term contracts and positive outlook still prevent CRWV from being seen as only a short-term AI bet.

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