Jefferies: Nvidia support eases CoreWeave scaling risk to5GW

How Is Wall Street Reacting to the CoreWeave–Nvidia Deal?

  • NVIDIA agreed to buy $2 billion of Class A stock in CoreWeave, expanding their collaboration to scale AI infrastructure.
  • The deal targets more than 5 gigawatts (GW) of AI factory capacity by 2030, up from about 2.9 GW today.
  • Jefferies rates CRWV as a Buy with a $120 price target; Mizuho kept a Neutral rating and raised its target to $100 from $92.
  • Analysts say Nvidia’s support on land and powered shells should reduce execution risk and speed scaling, and will help commercialize CoreWeave’s SUNK and Mission Control software.
  • Retail sentiment turned bullish on social platforms as CRWV shares rose and Nvidia’s stake and service commitments deepen.

On Monday, Nvidia agreed to purchase $2 billion of Class A common stock in CoreWeave, expanding an existing partnership meant to accelerate the buildout of AI factories and boost capacity toward more than 5 GW by 2030 from about 2.9 GW currently. The financial move accompanies plans for CoreWeave to use Nvidia’s high-performance computing platform and for both firms to integrate CoreWeave’s software into reference architectures.

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Jefferies said Nvidia’s involvement on land and powered shells should ease execution risk and help scaling, and added that Nvidia will assist in taking CoreWeave’s SUNK and Mission Control software to market as a higher-margin, asset-light growth avenue. The firm has a Buy rating on CRWV with a $120 price target, about a 21% upside from current levels.

Mizuho raised its CoreWeave price target to $100 from $92 while maintaining a Neutral rating, saying it remains "somewhat more reserved" about near-term revenue upside but that the deal gives "incremental confidence in the longer-term trajectory." The report noted CoreWeave’s stake rises to about 9% from 7%.

Shares of CRWV climbed more than 6% at the time of reporting, while NVDA fell roughly 0.6%. CRWV has gained over 147% in the past year, and NVDA has risen about 57% in the same period. Social sentiment moved to bullish, with users calling the deal akin to "an AI infra re‑rating than a momentum pop" and saying it felt like the "backbone of the US AI strategy" taking shape.

The agreement also includes Nvidia adopting multiple generations of its technology at CoreWeave sites and a commitment by Nvidia to buy more than $6 billion in services through 2032.

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