CoreWeave Poised for Fast Move After Google, Nvidia News Turns Heads
CoreWeave could lead rebound names once we have clarity on global trade, following an obscured IPO.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
Extreme market selling continued on Monday morning. This three-day drop is one of the worst in history, and there is no sign of support yet.
There was a fake news headline about a potential 90-day halt in tariffs, but the White House press secretary confirmed that this was untrue. That event caused some whiplash, as a quick bounce was totally reversed.
The problem is that there has not been a single drop of positive news on tariffs. There is no news of negotiations, and the White House made it clear that, even if Vietnam went to zero tariffs, that isn't good enough because of other factors that impact trade.
Eventually, we will see something positive, and we'll get a quick bounce, but there is no way to know when that might occur.
My job right now is to try to identify stocks that will make the best moves once we have a little more clarity on trade. One of my top plays for a fast move 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 a 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 Blackwell chips for running artificial intelligence from CoreWeave. 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.
I'm extremely optimistic, not about the indices, but about the many great opportunities that are developing.
At the time of publication, DePorre was long CRWV.
