Nvidia is making a fortune! CoreWeave has risen approximately 65% year-to-date
CoreWeave has risen approximately 65% since its listing earlier this year, with NVIDIA becoming one of the biggest beneficiaries. NVIDIA holds shares in CoreWeave valued at nearly $1.6 billion. CoreWeave is a company that provides cloud rental services of NVIDIA graphics processors for AI model training. It went public on NASDAQ in March, becoming the largest venture capital-backed tech IPO in the U.S. since 2021. CoreWeave's revenue grew by 420% year-on-year, exceeding market expectations, indicating that the AI boom continues to heat up
After a significant rise in stock prices this week, CoreWeave (CRWV.US) has increased by approximately 65% since its listing earlier this year, while NVIDIA (NVDA.US) has become one of the biggest beneficiaries of this surge.
According to information obtained by Zhitong Finance APP, NVIDIA held nearly $900 million worth of CoreWeave shares as of the end of March, based on documents submitted by the company on Thursday. Assuming NVIDIA has not reduced its holdings since then, the current value of this stake is close to $1.6 billion, as CoreWeave's stock price has soared over the past month.
CoreWeave is a company that provides cloud leasing services for NVIDIA graphics processors for training artificial intelligence models. It went public on NASDAQ in late March this year, becoming the largest venture capital-backed tech IPO in the U.S. since 2021. Prior to its IPO, the company raised billions of dollars through equity and debt financing, with NVIDIA being one of the key investors.
When submitting its IPO prospectus, NVIDIA held 17.9 million shares of CoreWeave, accounting for about 5% of the company. However, according to updated documents released on Thursday, NVIDIA's current holdings have increased to 24.2 million shares.
During CoreWeave's IPO roadshow, while seeking investor support, the company estimated an offering price range of $47 to $55 per share. However, due to a prolonged downturn in the IPO market and cautious investor sentiment, NVIDIA stepped in to help. According to foreign media reports, the company subscribed to $250 million worth of shares at $40 per share to support the offering.
Ultimately, CoreWeave completed its IPO at a price of $40 per share, raising $1.5 billion. CoreWeave CEO Mike Intrator stated in an interview with CNBC after the IPO that NVIDIA is a "fantastic partner" and described the relationship between the two as "symbiotic."
As of Thursday, CoreWeave's stock price closed at $65.77. The company's financial report released on Wednesday evening showed a year-on-year revenue growth of up to 420%, far exceeding market expectations, further confirming the ongoing heat of the artificial intelligence boom
