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If You'd Invested $50,000 in CoreWeave on its First Day of Trading, Here's How Much You'd Have Now

The Motley FoolSep 27, 2025 10:10 PM

Key Points

  • CoreWeave is a cloud infrastructure operator taking aim at the market for artificial intelligence and graphics workloads.

  • It has a key ally: artificial intelligence chip giant Nvidia.

  • Demand for its data center services has been taking off.

CoreWeave (NASDAQ: CRWV) has become one of investors' favorite stocks to watch. It debuted on the market with an initial public offering back in March, and it operates in the hot space of artificial intelligence (AI). On top of this, GPU giant Nvidia is one of its backers, both owning a stake in the company and working closely with it.

This up-and-coming cloud computing company has had its share of ups and downs this year, but overall, it has been a winning bet for its early investors. And considering the already high levels of demand for AI capacity and the forecasts for further growth on that front, CoreWeave may have an extremely bright future. Analysts predict the value of the AI market will reach beyond $2 trillion in a few years.

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Let's consider how much you would have now if you'd invested $50,000 in CoreWeave at its market launch -- and if the stock still is a buy today.

An investor at home looks at something on a tablet.

Image source: Getty Images.

Access to Nvidia AI chips

So, first, a quick catch-up on the CoreWeave story. The company offers customers the ability to rent access to Nvidia's top graphics processing units (GPUs) for their AI tasks. Customers can rent by the hour, which offers them enormous flexibility, and CoreWeave's focus on building a hardware backbone suitable for AI workloads means its customers are getting high performance and efficiency.

CoreWeave works closely with Nvidia, and has been the first cloud infrastructure provider able to make the AI chip giant's latest wares -- such as GPUs based on its Blackwell architecture and the even newer Blackwell Ultra -- available to customers. That has been a big plus for CoreWeave, as demand for these chips has been high, and customers want access to them as soon as possible.

As mentioned, Nvidia owns a stake in CoreWeave -- 24,277,573 shares to be exact, as of the end of the second quarter. That holding represents 91% of Nvidia's investment portfolio. So, it's clear the chipmaker is optimistic about the business. Reinforcing that premise, Nvidia recently signed an agreement to take on any extra capacity that CoreWeave can't rent out to other customers all the way through 2032. Considering Nvidia's expertise in the world of AI, all of these elements offer good reasons to be bullish on CoreWeave.

Your potential winnings

Now, let's consider where you'd stand if you'd invested $50,000 in CoreWeave on its first day of trading, back in March. It's important to note that the stock didn't immediately take off. It slipped in April along with the rest of the market on concerns about President Donald Trump's tariffs on imports. But the shares later rebounded and have marched higher. Today, that position's value would top $166,000.

That's a fantastic return in such a short period of time. The next question is: Is this stock still a buy at these levels -- or has it reached its full potential for the foreseeable future?

CoreWeave has seen tremendous demand for its computing capacity, and its revenue tripled in its most recently reported quarter. Considering the need for GPUs to drive the next phases of the AI trend, this momentum could continue. Though CoreWeave isn't yet profitable, that isn't surprising at this stage of its story -- and it will have to continue investing in GPUs to provide its customers with what they need. This wouldn't stop me from buying the stock at this point, though it may not be the best choice for cautious or value-oriented investors at the moment.

Yes, this Nvidia-backed player's shares have taken off, but it's offering something that's in high demand now and should remain in high demand in the years to come -- processing capacity for AI workloads -- so it's likely that its revenue growth will continue at a fast pace. And Nvidia's involvement suggests CoreWeave will continue to have early access to the chipmaker's most advanced products.

CoreWeave may not soar by more than 200% over the course of just a few months again, but the company has what it takes to climb further in the quarters and years to come. If you're a growth investor, it would be a great idea to buy and hold shares of this potential AI winner.

Should you invest $1,000 in CoreWeave right now?

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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.
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