CSP on CoreWeave (CRWV) · Invest & Retire Community

CSP on CoreWeave (CRWV)

I sold a CSP CRWV May30 92 Put for premium of 5.15. Not a bad return for about a week.

CoreWeave Inc. (CRWV) is a cloud infrastructure company specializing in GPU-accelerated computing for artificial intelligence and machine learning workloads. Founded in 2017, the company transitioned from cryptocurrency mining to providing AI-focused cloud services.

On March 28, CoreWeave launched its initial public offering, pricing shares at $40 each — below its anticipated range of $47 to $55. Still, the IPO raised $1.5 billion, making it one of the largest AI-related listings since 2021. Since then, the stock is up more than 150%.

Its data centers are equipped with Nvidia GPUs, and Nvidia holds approximately a 7% stake in CoreWeave.

On May 14, CoreWeave reported better-than-expected revenue on Wednesday in the company’s first earnings release since going public. CoreWeave reported a 420% year-over-year revenue increase to $981.6 million for the first quarter.

Despite this growth, the company’s net loss widened to $314.6 million from $129.2 million a year earlier, partly driven by $177 million in stock-based compensation linked to its IPO.

“Demand for our platform is robust and accelerating as AI leaders seek the highly performant AI cloud infrastructure required for the most advanced applications,” Chief Executive Officer Michael Intrator said in a statement.

CoreWeave expects revenue of $4.9 billion to $5.1 billion in 2025, which implies a growth of 363% and surpasses Wall Street forecasts. It also projects capex of $20 billion to $23 billion for the year.

In the first quarter, OpenAI signed a five-year deal with CoreWeave worth up to $11.9 billion. In addition, the two companies signed another $4 billion contract after the quarter ended, Intrator told CNBC.

Nvidia has been invested in CoreWeave since April 2023. In the first quarter this year, Nvidia bought 24,182,460 shares after the company's IPO, according to data from WhaleWisdom based on 13F filings.

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