SAN FRANCISCO, Calif. — What’s good for Nvidia (NVDA) looks to be good for its key partner in the AI infrastructure boom, CoreWeave (CRWV).
“We are struggling to meet demand every day,” CoreWeave CEO Michael Intrator told Yahoo Finance from the Goldman Sachs Communacopia & Tech Conference (video above). “Every GPU we have could be sold to multiple different clients. It is a unique moment, and it continues to be.”
Nvidia serves as the backbone, primary supplier, and main financial guarantor for CoreWeave’s ever-expansive neocloud operation.
Beyond supplying 100% of the advanced GPUs powering CoreWeave’s specialized AI data centers, Nvidia acts as a major strategic shareholder, holding an 11.5% equity stake.
Nvidia said after reporting its fiscal second quarter earnings that it sees 70% revenue growth for fiscal year 2028, above analyst forecasts for 45% growth. The sales gain would be larger — think in excess of 100% — if not for memory chip shortages, Nvidia CEO Jensen Huang said.
That demand outlook should keep CoreWeave’s business humming.
CoreWeave reported that second quarter sales surged 112% year over year. Adjusted operating profits more than doubled to $1.5 billion.
Driven by explosive enterprise demand for graphics processing unit (GPU) compute and a massive $104 billion total revenue backlog, management raised its full-year 2026 revenue guidance to a range of $12.4 billion to $13.2 billion.
CoreWeave stock responded accordingly, up about 40% year to date.
“The quarter demonstrated AI demand remains robust, strengthening pricing power (25% increases across SKUs), growing software/token business, and upside surprises on margins,” Citi analyst Tyler Radke wrote. “Overall, this was one of the cleaner quarters we’ve seen from CoreWeave since the IPO and we think shares should move meaningfully higher on increased investor confidence in the execution and improving profitability.”
Nvidia’s torrid growth means “that we got a lot of work to do,” Intrator said.
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance