Why CoreWeave Rallied 46.5% in June
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S of artificial intelligence (AI) neocloud CoreWeave (CRWV 1. 93%) rocketed 46. 5% in June, according to data from S&P Global Market Intelligence. CoreWeave went public in March under a...
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July 3, 2025
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S of artificial intelligence (AI) neocloud CoreWeave (CRWV 1. 93%) rocketed 46. 5% in June, according to data from S&P Global Market Intelligence
CoreWeave went public in March under a cloud of scrutiny and fears over tariffs
However, it has since become an AI darling, skyrocketing not only in May on the back of an incremental Nvidia (NVDA 2. 11%) investment, but also in June
June's gains appeared to come from increasing optimism over AI-related growth, with CoreWeave publishing impressive leading benchmarks running Nvidia's Blackwell chips
Image source: Getty Images
The largest and fastest GB200 NVL72 cluster in the industry In early June, CoreWeave submitted MLPerf Training v5. 0 benchmarks for its GB200 NVL72 cluster, in collaboration with Nvidia and IBM
CoreWeave's submission used 2,496 Nvidia GPUs running on CoreWeave's AI-optimized infrastructure
That infrastructure includes CoreWeave's prietary software and middleware innovations such as SUNK, which allows customers to use a combination of AI training gramming languages instead of having to choose just one
CoreWeave's Tensorizer software also routes data to the closest possible GPU, resulting in faster training times
CoreWeave said its training cluster was 34 times larger than the only other cluster submitted for the same benchmark from a major cloud vider, underscoring CoreWeave's current advantage of deploying huge Nvidia clusters quickly
The company noted its infrastructure ran the large 405 billion-parameter Llama 3. 1 model in just 27. 3 minutes, more than twice as fast as other submissions
CoreWeave may have an advantage due to Nvidia's investment, but also is risky CoreWeave may be getting a preferred allocation of Nvidia chips before other major clouds, due to Nvidia's investment in CoreWeave, as well as all major clouds now pursuing their own AI training and inference ASICs
So CoreWeave appears to have a time-to-market advantage versus others, which may make CoreWeave attractive to AI labs needing the and greatest Nvidia chips as quickly as possible in large numbers
For instance, OpenAI, thought to be the leading AI lab today, inked an $11. 9 billion deal with CoreWeave in March
That being said, CoreWeave is inherently at the mercy of Nvidia, which is both a supplier, investor, and customer, in a somewhat circular relationship
While the arrangement seems to be working for now, there is always the danger that if Nvidia ever gets a big competitive threat, things could get complicated for CoreWeave -- especially at its current elevated valuation
Billy Duberstein and/or his clients has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends International Machines and Nvidia
The Motley Fool has a disclosure policy.
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