Our stock of the week is CoreWeave (CRWV). CoreWeave is a recent IPO that received much attention but was timed poorly and may offer a good opportunity in this very poor market.
CRWV is a cloud computing company that specializes in providing high-performance infrastructure, which is mainly GPU produced by Nvidia (NVDA) to handle artificial intelligence (AI) and machine learning workloads. Essentially, it rents access to the most powerful Nvidia GPUs and manages the underlying infrastructure, allowing businesses and developers to run complex, compute-intensive tasks without needing to own the hardware themselves.
CRWV has a network of about 32 data centers globally, from which it offers its service through a cloud platform. This platform is optimized for tasks like training and running large AI models, rendering graphics, and other demanding applications such as real-time streaming or scientific simulations.
Shortly after the IPO, it was reported that Google (GOOGL) was in advanced talks to rent Nvidia (NVDA) Blackwell chips for running artificial intelligence from CoreWeave (CRWV). The deal illustrates how major Nvidia customers like Google are struggling to get enough of its chips to meet rising demand and also shows "how CoreWeave's special relationship with Nvidia and its ability to move quickly in setting up AI-focused data centers is attracting business from large cloud providers."
Because of market conditions, the Coreweave IPO was priced well below expectations at $40 and broke pricing before the Google news was released. The stock spiked more than 50% but has not pulled back to the low 40s due to tariff issues.
I believe that this stock will rebound very quickly as the tariff pressure is lifted, plus it has support at the IPO price. My game plan is to take small initial positions and wait for better price action to develop.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in CRWV. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
