Nvidia holds stock in CoreWeave and has committed to a $6.3 billion investment in the company.
CoreWeave builds AI data centers and rents out compute capacity to the hyperscalers.
CoreWeave trades at a discount to smaller peers such as Nebius Group and Iren.
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When companies generate excess profit, it’s typical for them to allocate capital to initiatives in sales and marketing, product development, or additional hiring. From time to time, however, businesses will make investments in other companies — acquiring an equity stake in the process.
According to Nvidia’s (NASDAQ: NVDA) most recent 13F filing, the chip powerhouse holds shares in the following public companies: Applied Digital, Arm Holdings, Nebius Group, Recursion Pharmaceuticals, WeRide, and CoreWeave (NASDAQ: CRWV).
Since going public earlier this year, CoreWeave’s share price has soared by 110%. While this handily outperforms the S&P 500 and Nasdaq Composite, CoreWeave stock is trading more than 50% below its prior highs.
Let’s unpack CoreWeave’s business model and explore why the company is going to be an important player in the artificial intelligence (AI) infrastructure era. From there, I’ll analyze CoreWeave’s valuation and make the case for why the stock looks like a great buy heading into 2026.
CoreWeave can be thought of as a neocloud. Neoclouds are businesses that build data centers and outfit them with clusters of GPUs. Once constructed, CoreWeave rents access to this infrastructure through a cloud-based platform.
This model is beneficial for companies that may not be able to procure necessary resources — chips, servers, and networking equipment — or cannot afford the timeline required to build their own AI infrastructure.
Image source: Getty Images.
Over the last year, big tech hyperscalers have been accelerating their investment in AI capital expenditures (capex).
While much of this spend has gone toward building custom data centers, many of the hyperscalers have been increasingly turning to neoclouds as a complement to their existing infrastructure. CoreWeave has been a direct beneficiary of these tailwinds.
At the end of the third quarter, CoreWeave boasted $55.6 billion in backlog — representing an increase of 271% year over year.
Among the company’s notable customers is OpenAI, which has a total commitment of $22.4 billion to CoreWeave across three tranches. In addition, CoreWeave signed a multiyear deal worth $14.2 billion with Meta Platforms during the third quarter.
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