CoreWeave IPO Flinches (NASDAQ: CRWV)
- Robert The Bruce
- Apr 9
- 1 min read
CoreWeave lists after scaled back IPO Amid Market Turmoil
CoreWeave, an AI-focused cloud computing company, recently adjusted its initial public offering (IPO) plans, reflecting broader market uncertainties.
Originally aiming for a $30 billion valuation and $3 billion in raised funds, the company revised these figures to align with its previous $23 billion private valuation and reduced the fundraising target to $1.5 billion.
On March 28, 2025, CoreWeave went public at $40 per share, below the initial price range of $47 to $55.
Despite this conservative debut, the stock closed at $52.57 on April 1, marking a 42% increase from the IPO price.
This volatility is partly attributed to a limited stock float and speculative trading, including potential short squeezes.
However, the company's close ties with Nvidia have raised concerns.
Nvidia invested $250 million during CoreWeave's IPO, and in 2024, Nvidia's investments in CoreWeave totalled $100 million.
Analysts warn that such interdependencies could pose risks if either company faces financial challenges.
In summary, CoreWeave's IPO adjustments and the current market volatility highlight the challenges AI companies face amid economic uncertainties.
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