Nvidia’s Coreweave Position Explodes

By Douglas A. McIntyre Published Jun 13, 8:22AM EDT

Key Points

NVIDIA (NASDAQ: NVDA) took the largest equity stake in CoreWeave (NASDAQ: CRWV) during its IPO, solidifying a key strategic and financial position in one of its fastest-growing AI customers.
CoreWeave’s business is heavily dependent on Nvidia’s chips for AI infrastructure, aligning Nvidia’s investment with its long-term hardware demand growth.
CoreWeave’s IPO success, despite early skepticism, signals a revival in capital markets for AI-focused firms, potentially boosting Nvidia’s indirect exposure to AI infrastructure momentum.

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Nvidia’s Coreweave Position Explodes — © 24/7 Wall St

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Transcript:

[00:00:04] Doug McIntyre: Comments about NVIDIA and its earnings based on its, uh, ownership position in CoreWeave. How does that work? What’s the news about that?

[00:00:12] Lee Jackson: Well, I think in front of the CoreWeave IPO, NVIDIA took the biggest position in take, took the most shares in the IPO and it was a staggering amount.

[00:00:24] Lee Jackson: And, and this, despite the fact that some people on Wall Street didn’t like the deal, it started out rocky, but boy, uh, it has exploded higher. And it was funny after it went higher, after the first run-up, it came back almost. The deal price and then it went back up again. So even if you missed it the first time, you could have round tripped it.

[00:00:45] Lee Jackson: And it’s one of the biggest holdings NVIDIA has now.

[00:00:50] Doug McIntyre: Now, uh, look, they use NVIDIA chips. Yeah. Now what’s the point of what, what’s the thinking at the corporate level? Of NVIDIA about why they wanna own it. It’s like, well, these guys use our chips. That means that it’s gonna help. You know what I’m saying?

[00:01:06] Doug McIntyre: What’s the, what’s the thought process behind it?

[00:01:08] Lee Jackson: Well, I mean, CoreWeave’s functional business is ai, and you know. AI computing, AI cloud, you know, AI Tech Center, all of that. So I’m assuming that, you know, they were just thinking that, hey, if this got, if this company’s gonna be such a big client of ours and they’re growing exponentially really fast, I mean the founders, it’s interesting, the founders of CoreWeave.

[00:01:35] Lee Jackson: I think were initially, um, they were crypto traders and crypto, uh, miners, and then, you know, then moved over into another space and, um, boy, it, it, it’s been the IPO market dug for literally almost two years has been dead. There’s been nothing. And you know, the, every once in a while Wall Street tries to sneak something out, but capital markets is a huge part of Wall Street.

[00:02:02] Lee Jackson: And now there’s, you know, there was a deal recently that was up 180% on the first trading day. and it was circle AI or something of that name. it was huge. It was priced at like 31 and oh, you know, it was up to 103 on the first day of trading.

[00:02:19] Lee Jackson: That’s right out in 1989 in Red Hat and the things that were public

[00:02:24] Doug McIntyre: then and just, does this remind you of the.com boom in any way?

[00:02:29] Lee Jackson: Well, hardly because I was working at Bear Stearns during those days and they, those were some good commission days. Let’s just leave it at that. But, um, I think it’s, it’s a little harder ’cause then anything that said.com, anything, even if it was ridiculous worked, but now you can’t just tag AI onto the end of your, uh, company name and have it work.

[00:02:53] Doug McIntyre: It looked like you could for a while, but you’re right.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.