CoreWeave Stock Rockets 56% After NVIDIA Reveals Bigger Bet

CoreWeave shares went absolutely bonkers last week, jumping 56% after the AI cloud company crushed earnings and everyone found out NVIDIA's been quietly buying up more stock than anyone realized.

CoreWeave Crushes It with Mind-Blowing 400% Revenue Jump

Talk about hitting it out of the park. CoreWeave just dropped some seriously impressive numbers, posting revenue growth that'll make your head spin—over 400% compared to the same time last year. That's not a typo, folks. We're talking about a company that's riding the AI wave like a pro surfer catching the perfect break.

The company went public just a couple months back in March, starting at $40 a share. Since then, it's been the poster child for everything investors love about the AI gold rush. Everyone's scrambling to get a piece of companies that can actually keep up with the crazy demand for AI stuff, and CoreWeave seems to have figured out the secret sauce.

NVIDIA Goes All-In with 7% Stake in CoreWeave

Here's where things get really spicy. Turns out NVIDIA—you know, the chip company that's basically become synonymous with AI—has been quietly upping its bet on CoreWeave. They now own 7% of the company, which is up from about 5% before CoreWeave went public. That news dropped like a bombshell on Thursday when they filed some paperwork.

Now, when NVIDIA puts more skin in the game, people pay attention. These guys aren't exactly known for throwing money around carelessly. Their bigger investment basically screams "we think CoreWeave's going places," and the market definitely got the message loud and clear.

CoreWeave Lands Massive $4 Billion Deal with OpenAI

But wait, there's more. CoreWeave also announced they've locked in a sweet four-year deal with OpenAI—the ChatGPT folks—worth up to $4 billion. And get this: that's on top of another nearly $12 billion commitment they announced back in March. We're talking serious money here.

This OpenAI partnership isn't just about the cash flow, though that's obviously nice. It's like getting a stamp of approval from one of the biggest names in AI. When companies like OpenAI are willing to write checks with that many zeros, it tells you CoreWeave isn't just another cloud provider—they're the real deal.

CoreWeave Stock More Than Doubles Since Going Public

All this good news sent CoreWeave's stock into orbit. The shares closed Friday at $80.30, which means anyone who bought at the $40 IPO price has basically doubled their money. That 56% jump in just one week? That's the kind of move that makes day traders weak in the knees.

The stock's performance shows just how hungry investors are for companies that are actually making money off the AI boom, not just talking about it. CoreWeave's proving they can walk the walk, not just talk the talk.

Technical Breakdown: CoreWeave Shows Classic Cup and Handle Pattern

Now let's talk charts for a minute. CoreWeave's been painting a pretty picture technically speaking. Between late April and early May, the stock formed what traders call a "cup and handle" pattern—basically looks like someone drew a teacup on the chart. Last week, it broke out above that pattern, which is usually a good sign for more upside.

What's really encouraging is that this breakout happened with heavy trading volume. When lots of people are buying during a breakout, it usually means the big players—the institutions with deep pockets—are getting involved. That's typically a good omen for the stock's future.

The RSI (that's trader-speak for momentum) is showing the stock's got some serious mojo behind it, though it cooled off a bit on Friday. That's normal after such a big run—sometimes people take some profits off the table before the weekend.

CoreWeave Price Targets and What to Watch Next

Using some chart wizardry, traders are eyeing a potential target around $96.90—that's roughly 20% higher than where it closed Friday. They get this number by measuring the "cup" part of that pattern and projecting it higher. It's not rocket science, but it gives you an idea of where the stock might be headed if the good times keep rolling.

If CoreWeave takes a breather and pulls back a bit, there are a couple levels worth watching. First stop would be around $73, which was Thursday's high. That could be a decent spot for anyone looking to jump in on a dip.

If things get really choppy and the stock drops more, the next big level to watch is around $57. That's where the top of that cup and handle pattern sits, and it could act like a safety net if sellers start getting aggressive.

What's Next for CoreWeave?

Looking ahead, CoreWeave's sitting pretty with all the pieces in place. They've got NVIDIA backing them with more cash, OpenAI writing them huge checks, and revenue growing faster than bamboo in spring. The technical picture looks solid too, with that breakout suggesting more upside could be in the cards.

That said, let's not forget this is still a pretty new public company in a market that can change faster than you can say "artificial intelligence." The fundamentals look great and the charts are promising, but keeping an eye on those support levels will be key if things get bumpy. After all, what goes up fast can sometimes come down just as quick—though with CoreWeave's track record so far, the bulls seem to be firmly in control.