After 50% Crash, CoreWeave Faces Its Make-or-Break Test: Nvidia Earnings

Benzinga
2025.08.25 18:23
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CoreWeave, Inc. (NASDAQ:CRWV) faces a critical moment as Nvidia's upcoming Q2 earnings report could significantly impact its stock. With CRWV down 20% this month and a 50% drop from its June peak, investor sentiment is shaky. CoreWeave's reliance on Nvidia's GPU sales for its cloud services means Nvidia's performance will influence CoreWeave's future. A strong Nvidia report could stabilize CoreWeave's valuation, while disappointing results may exacerbate existing pressures. As of now, CRWV shares are down 2.53% at $91.61.

CoreWeave, Inc. CRWV stock is at a crossroads, with the NVIDIA Corp. NVDA earnings report preparing to test investor confidence and the company's long-term trajectory.

  • CRWV stock is down 20% this month. Check out the chart here.

CoreWeave's business model is deeply intertwined with Nvidia's ecosystem as it provides high-performance GPU cloud services, largely powered by Nvidia's H100 and A100 chips.

This dependence means Nvidia's financial performance, guidance and commentary on AI demand has the potential to affect market sentiment toward CoreWeave.

NVDA Q2

If Nvidia signals continued strength in orders for its GPUs, particularly from cloud providers and enterprise customers, it could reinforce the thesis that CoreWeave remains well-positioned to capitalize on the surging demand for AI workloads.

However, any indication of slowing momentum or supply constraints could weigh heavily on CoreWeave.

Investors may have already begun recalibrating expectations and moving past the initial euphoria surrounding AI infrastructure toward a more sober analysis of CoreWeave's profitability and scale.

CoreWeave stock had been riding a wave of optimism around AI demand, but has seen a sharp 50% correction from its peak of $187 in late June.

A flurry of insider sales, as well as tightening funding conditions and questions about the sustainability of its rapid growth, have weighed on the stock.

CoreWeave's fate in the near term may hang on Nvidia's earnings as both a signal of the broader AI market's durability and a measure of how much growth runway remains for specialized cloud players.

A strong Nvidia report could offer a crucial lifeline, potentially stabilizing sentiment after CoreWeave's valuation collapse.

On the other hand, disappointing sales or a weaker outlook could accelerate pressures, making Nvidia's earnings release a real make-or-break test for CoreWeave stock.

CRWV Stock Price: According to data from Benzinga Pro, CoreWeave shares were down 2.53% at $91.61 at the time of publication Monday.

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