Nvidia Boosts CoreWeave Stake to 11%, Invests $4.9B in Q1
NVDA•Nvidia increased its stake in CoreWeave to 11% (47.2 million shares), spending $4.9 billion in Q1 to back the neocloud provider after 112% revenue growth to $2 billion and a $99.4 billion backlog. CoreWeave remains unprofitable and trades at 8x sales versus Nvidia’s 27x forward earnings, highlighting valuation risk.
1. Nvidia Boosts CoreWeave Stake
Nvidia increased its holding in CoreWeave to 47.2 million shares, raising ownership to 11% and committing $4.9 billion in Q1. This move underscores Nvidia’s confidence in the neocloud provider’s accelerating infrastructure demand.
2. Valuation and Profitability Concerns
CoreWeave reported 112% year-over-year revenue growth to $2 billion and holds a $99.4 billion backlog, but remains unprofitable. The company trades at 8x sales, contrasting Nvidia’s 27x forward earnings multiple and raising valuation risk concerns.
