Why CoreWeave stock panic matters to Nvidia, explained in under 30 seconds

Nvidia (NVDA) CEO Jensen Huang is unlikely to ignore the building pressure on CoreWeave’s (CRWV) stock price and bond values.

The simple reason why is that he can’t look the other way given how intertwined Nvidia is with the most well-known — and debated — neocloud.

For one, in January of this year Nvidia announced an expansion of its relationship with CoreWeave. The deal included Nvidia investing $2 billion in CoreWeave stock. CoreWeave committed to using Nvidia’s technology to build more than 5 gigawatts of AI factories by 2030.

Nvidia now holds 47.2 million shares of CoreWeave stock, or around 10% of the company.

And two, CoreWeave is a huge customer of Nvidia, as seen below in the chart from the team at Boring Business.

CoreWeave buys GPUs from Nvidia and then rents that compute back to other companies, including the hyperscalers like Meta (META).

“0% chance $NVDA lets $CRWV falter,” said tech analyst Daniel Newman on X.

Yet, failure of CoreWeave is what the market is chatting about.

Shares of CoreWeave plunged 6% in pre-market trading on Thursday following a 15% rout on Wednesday.

“In our view, the company’s long-term business model remains economically challenged; we maintain our Underperform,” Bernstein analyst Madison Rezaei said in a note Thursday.