CoreWeave (CW, Financial), a cloud-based AI computing company, experienced a significant stock price increase of over 12% on its third trading day following an initial public offering (IPO). This IPO is the largest venture capital-backed tech IPO in the U.S. since 2021, marking a crucial test for the IPO market, which has been largely stagnant due to high inflation and rising interest rates.
Initially priced at $40 per share, CoreWeave's stock faced a challenging start, dropping more than 10% on its second day of trading, falling below the IPO price. The company, which leases NVIDIA's GPUs for AI training, adjusted its initial price range from $47-$55 to $40 and reduced its offering size from 49 million to 37.5 million shares. CEO Mike Intrator cited macroeconomic headwinds as the reason for these adjustments.
Despite the initial setbacks, CoreWeave's revenue grew by over 737% last year, reaching $1.92 billion. The company views Microsoft as its largest client, competing with major players like Microsoft, Amazon, Google, and Oracle. However, CoreWeave reported a net loss of $863 million in its March filing.
