This week, cloud infrastructure provider Coreweave made waves, with its stock hitting a new all time high of $108.50, up 18%, in early trading Wednesday. Citi’s spectacular surge came after the investment bank more than doubled its price target on the stock, another signal of faith in the company’s longterm growth prospect.
Citi’s Bold Upgrade and Market Reaction
Coreweave’s “strong” first quarter performance was behind the price target raise to $94 from $43, by Citi analyst Tyler Radke, adding that the firm is “well positioned” in the AI infrastructure market. The firm kept a ‘Neutral’ rating on the stock, but it was the upward revision to the price quote (which is also already overtaken) that unleashed a buying interest. It’s the third straight day of gains for Coreweav, which has seen its shares rise more than 158% since it went public via IPO on March 28.
Coreweave’s recent $4 billion deal with OpenAI was the other catalyst to its growth, Citi cited. While the investment bank pointed out how the company could further improve profitability and diversification of its customer base, momentum in its AI driven cloud computing business was enough to justify a sharp upward reappraisal of the company’s valuation.
Nvidia’s Windfall and Strategic Backing
It’s a boon that’s primarily been good news for tech giant Nvidia. Nvidia owns 7 percent of the company or 24.2 million shares such SEC filings show. Coreweave initially raised $100 million in investments from Nvidia in April 2023, then raised an additional $250 million as part of the IPO. On a share price of around $100, Nvidia’s stake is worth roughly $2.42 billion, making the company’s paper profit off its total investment of $350 million, a cool $2.07 billion.
Not only does this backing give Coreweave a laundry list of strong industry credibility, but it also underlines the growing ecosystem of the AI infrastructure as Nvidia GPUs run the vast majority of big scale AI applications.
Microsoft: Coreweave’s Largest Customer
In fact, Microsoft currently makes up 62% of Coreweave’s 2025 revenue, per Coreweave’s IPO filings, in fact. It is worth noting, though, that the heavy concentration in Coreweave’s customer portfolio is indicative both of the strength and risk of this. Partnerships actually validate its technology and reliability, but they also mean diversification is a key strategic objective for the coming quarters.
Growth Outlook and Financial Guidance
Coreweave is guiding sales during the second quarter of 2025 of $1.06 billion to $1.1 billion and projected adjusted operating income of $140 million to $170 million. The company expects full-year revenue to be between $4.9 billion and $5.1 billion and adjusted operating income between $800 million and $830 million.
Coreweave believes its internal projections reinforce just how quickly it’s emerging as a serious player in AI cloud services, contending with Amazon Web Services and Google Cloud.
Conclusion
The AI cloud infrastructure sector has a new milestone with Coreweave’s stock breakout. Fully backed by institutional investors at Nvidia, the company has a solid revenue pipeline from Microsoft and has amongst the most aggressive growth plans on the road ahead, making it one of the standout success stories in 2025. Coreweave may have already reached Citi’s new target, but investor enthusiasm indicates that the market views a lot of room for upside, if only Coreweave can realize continued profitability and continue to expand its customer base.
