When companies earn more money than they need, they often spend it on marketing, hiring, or improving their products. Sometimes, they use their extra funds differently by investing in other businesses and taking a stake in them.

According to Nvidia’s (NASDAQ: NVDA) latest 13F filing, the company currently owns shares in several public companies, including Applied Digital, Arm Holdings, Nebius Group, Recursion Pharmaceuticals, WeRide, and CoreWeave (NASDAQ: CRWV).

Among this group, CoreWeave has been one of the most talked-about names in 2024. Since its public debut earlier this year, the stock has surged 110%, beating the S&P 500 and the Nasdaq. However, despite this big climb, the stock still trades over 50% below its previous highs, giving investors something to think about.

Below is a simple breakdown of what CoreWeave does, how fast it’s growing, and why many investors see potential going into 2026.

What CoreWeave Does And Why It Matters in the AI Boom

CoreWeave is known as a “neocloud” company.
This means it builds powerful data centers filled with GPU clusters, then rents out access to this computing power to businesses through the cloud.

Why is this important?

Not every company can afford to buy their own AI chips, set up servers, or wait years to build their own data centers. CoreWeave gives these companies fast access to high-performance AI infrastructure, making it easier to train large AI models and run heavy workloads.

As AI models become bigger and demand for GPUs increases, services like CoreWeave’s have become extremely valuable.

CoreWeave’s Business Is Growing Fast

Over the past year, major tech giants often called “hyperscalers” have greatly increased their spending on AI. While many of them build their own data centers, they are also turning to neocloud companies for additional capacity.

This trend has heavily benefited CoreWeave.

Explosive Growth in Backlog

At the end of the third quarter, CoreWeave reported $55.6 billion in backlog, which represents future contracted work.
This is a 271% increase from the year before, a huge jump for any company in this sector.

Key Customers and Big Contracts

CoreWeave already works with some of the most powerful names in AI:

• OpenAI has committed $22.4 billion to CoreWeave across three phases.
• Meta Platforms signed a multiyear $14.2 billion deal in Q3.
• Microsoft is currently CoreWeave’s single largest customer, making up 67% of total revenue.

Although relying heavily on one customer can be risky, CoreWeave is adding new clients quickly. As AI investment spreads across more companies, CoreWeave’s customer base is expected to diversify over time.

Does CoreWeave Look Like a Buy Right Now?

Wall Street analysts expect CoreWeave’s revenue to nearly quadruple over the next two years.
With a market value of $42 billion, the stock currently trades at a 2.2 price-to-sales (P/S) ratio based on projected 2027 revenue.

To compare:

• Rival neocloud firms Iren and Nebius Group both trade around 3.3× their expected 2027 sales.

This means CoreWeave is valued cheaper than its peers, despite having faster growth.

A Closer Look at the Debt and Why Nvidia Matters

Building advanced data centers and buying GPUs is extremely expensive.
CoreWeave has taken on over $13 billion in debt to keep up with fast-growing demand.

Some investors worry about this.
However, Nvidia has created an important safety net.

Nvidia’s $6.3 Billion Support Deal

Nvidia signed a $6.3 billion agreement promising to buy CoreWeave’s unused capacity if customers do not use it.

This deal is a big deal for two reasons:

1. It reduces the risk of CoreWeave overbuilding.
2. It shows Nvidia’s confidence in CoreWeave’s long-term role in the AI infrastructure market.

In simple terms:
Nvidia is helping make sure CoreWeave doesn’t get stuck with empty data centers or unused GPU clusters.

Why CoreWeave Is a Strong AI Infrastructure Play for 2026

CoreWeave is growing at a rapid pace, signing major contracts, and playing a central role in the expansion of AI computing power. With its large backlog, rising demand, and strong partnership with Nvidia, CoreWeave has created a promising foundation for the future.

For investors looking at companies powering the AI infrastructure era, CoreWeave stands out as a stock worth watching closely, especially while it trades at a discount compared to similar companies.

Disclaimer

This article is for information and educational purposes only and should not be taken as financial advice. Investing in stocks involves risk. Always do your own research or consult a licensed financial advisor before making investment decisions.