CoreWeave (CRWV) Stock: Why Shares Crashed 50% Despite Revenue Growth

TLDR

• CoreWeave stock plunged 50% over one month despite reporting Q3 2025 revenue of $1.36 billion, representing 13% quarterly growth
• The company launched Zero Egress Migration program November 13, allowing free data transfers from AWS, Google Cloud, Azure, IBM, and Alibaba
• H.C. Wainwright analyst set $180 price target November 12, maintaining Buy rating based on $55.6 billion backlog and contracts with Meta and OpenAI
• Nvidia owns roughly 7% of CoreWeave and reported strong Q3 earnings of $57 billion, up 62% year-over-year
• Recent acquisitions of OpenPipe, Weights & Biases, and Monolith AI expand CoreWeave’s machine learning capabilities

CoreWeave stock collapsed 50% in just one month. The drop came even as the company reported solid revenue growth and launched new customer services.

CoreWeave, Inc. Class A Common Stock, CRWV

The AI infrastructure provider posted Q3 2025 revenue of $1.36 billion. This marked a 13% increase from the prior quarter.

CoreWeave maintains a backlog worth $55.6 billion. Performance obligations total $50 billion, backed by major clients like Meta and OpenAI.

On November 13, the company unveiled its Zero Egress Migration program. The service eliminates transfer fees when customers move datasets from competing cloud platforms.

The program works with AWS, Google Cloud, Azure, IBM, and Alibaba. CoreWeave handles secure managed transfers with real-time monitoring included.

Egress fees typically cost companies significant money when moving AI workloads. CoreWeave’s new offering removes this barrier for potential customers.

Analyst Stays Bullish Despite Selloff

H.C. Wainwright’s Kevin Dede maintained his Buy rating on November 12. He assigned a $180 price target to the stock.

Dede cited strong fundamentals and long-term growth prospects. His rating came just before the stock decline accelerated.

A small guidance adjustment triggered what analysts call a market overreaction. The company’s underlying business metrics stayed healthy throughout.

CoreWeave has expanded through strategic purchases. Recent acquisitions include OpenPipe, Weights & Biases, and Monolith AI.

These deals boost CoreWeave’s reinforcement learning and applied machine learning tools. The company also renewed its Platinum ClusterMAX rating for infrastructure reliability.

New partnerships with NASA and U.S. government agencies diversify the client base. These contracts require meeting strict security and performance standards.

Nvidia Stake Adds Investor Interest

Nvidia holds about 7% equity in CoreWeave. The chip giant supplies the GPUs powering CoreWeave’s data centers.

Nvidia posted Q3 2025 revenue of $57 billion, beating forecasts. Revenue jumped 62% compared to last year.

The company expects continued demand for AI chips. Analysts project Nvidia earnings could hit $7.75 per share in 2026 and $9.50 in 2027.

Nvidia owned nearly $900 million in CoreWeave shares earlier in 2025. The chipmaker has increased its position since then.

Strong Nvidia earnings support confidence in AI infrastructure. CoreWeave relies heavily on Nvidia GPU technology for its operations.

Market Volatility Hits AI Stocks

The AI sector faces a challenging environment right now. High capital spending contrasts with modest current revenues across the industry.

This creates volatility for infrastructure providers. CoreWeave’s price action shows how quickly sentiment can shift.

Investors question whether revenue growth can match heavy investment levels. Many AI companies still lack profitability.

CoreWeave operates as a hyperscale cloud provider focused on GPU-accelerated workloads. The company serves AI, machine learning, and high-performance computing customers.

The Zero Egress Migration program positions CoreWeave as a cost-effective alternative to traditional cloud providers. Secure transfers and real-time monitoring come standard with the service.

CoreWeave’s Q3 performance showed continued business momentum despite market headwinds. Revenue growth of 13% reflected ongoing demand from major tech clients.

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