CoreWeave, a cloud computing firm backed by chipmaker Nvidia (NVDA), “couldn’t have picked a worse time to launch an IPO,” according to a U.K.-based analyst.
As reported by Bloomberg, CoreWeave is said to be close to filing its $4 billion initial public offering (IPO) perhaps as soon as next week. It is reportedly seeking a $35 billion valuation. CoreWeave is a specialized cloud services provider which leases access to Nvidia’s AI chips from its 14 data centers. Investors will hope that it is therefore primed to continue capitalizing on increased demand for cloud-based AI services.
AI Pace Slowing Down
However, Dan Coatsworth, investment analyst at AJ Bell in the U.K. said its timing wasn’t perfect given the concerns over AI growth this week. He was referring to Microsoft (MSFT) – CoreWeave’s biggest customer – reportedly taking its foot off the pace of data centre investments. “It’s not a good look and could have planted a seed of doubt in prospective investors’ minds when looking at CoreWeave,” he said. “There are growing market fears that the pace of AI roll-out won’t be as fast as previously thought.”
Nvidia also took a bashing in Coatsworth’s note. He said that it was one of the worst performing U.S. stocks so far this year – indeed, it is down nearly 10% year-to-date – as more people started to ask questions about when companies would get a positive return on their AI infrastructure spending. Despite better-than-expected results this week he said the company is still vulnerable to competitors such as China’s DeepSeek. “Cracks are appearing in the AI story,” he warned.
Is NVDA a Good Stock to Buy?
On TipRanks, NVDA has a Strong Buy consensus based on 38 Buy and 3 Hold ratings. Its highest price target is $220. NVDA stock’s consensus price target is $178.66 implying an 46.32% upside.
