Nvidia Deal Sends CoreWeave Stock Higher—Skeptics See 90% Downside

CoreWeave, Inc. shares were in the spotlight on Monday due to a combination of an expanded deal with NVIDIA Corp. NVDA and a short report from Kerrisdale Capital. Let’s dive in. 

New Nvidia Contract 

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CoreWeave announced on Monday that it has signed a new agreement with Nvidia valued at an initial $6.3 billion. Under the deal, Nvidia will buy any unused cloud capacity that is not sold to customers, with the obligation lasting until April 13, 2032.

CoreWeave stock initially gained more than 9% on the news in Monday’s premarket trading, but shares have retreated a bit following a short report from Kerrisdale Capital. 

Kerrisdale Sees 90% Downside

Kerrisdale Capital said it is now short shares of CoreWeave after the stock soared nearly 200% over its IPO price based on hype, not substance. 

Benzinga reached out to CoreWeave for comment, but did not receive a response at the time of publication. 

The short seller claimed that CoreWeave has built its business on long-term contracts with a few large customers and on expensive debt and timing, not true innovation. 

CoreWeave lacks unique technology, has no defensible intellectual property, and does not offer a full-stack platform, according to Kerrisdale. 

“CoreWeave isn’t pioneering the future of AI – it’s a debt fueled GPU rental business with no moat, dressed up as innovation,” Kerrisdale wrote, calling for a fair value of $10 per share. 

CRWV Price Action: CoreWeave stock was up 7.82% at $120.71 on Monday, according to data from Benzinga Pro.

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