CoreWeave's IPO Set to Impact Nvidia and Microsoft Stocks

CoreWeave's IPO could significantly shake up the market. With explosive revenue growth and backing from Nvidia and Microsoft, investors are keenly watching this debut.

Date: 09-03-2025

AI Rating: 7

CoreWeave's Financial Overview

CoreWeave has shown remarkable financial growth in recent years. Its revenue surged from $15.8 million in 2022 to a projected $1,915.4 million in 2024. This represents an astonishing growth rate of 737%, an impressive figure for a startup.

Additionally, while the company reported operating losses of ($22.9 million) in 2022 and ($14.5 million) in 2023, it is expected to turn a profit by 2024 with a projected operating income of $324.4 million. The operating margin also reflects a positive trend, moving from (145%) in 2022 to 17% in 2024.

These financial metrics indicate a transformative trajectory that could attract substantial investor interest. The anticipated switch to profitability bodes well for CoreWeave and reflects its ability to scale effectively.

Risks and Customer Dependence

However, there are concerns that could temper enthusiasm. A significant portion of CoreWeave's anticipated revenue in 2024—around 62%—is derived from Microsoft. If Microsoft advances its AI infrastructure and relies less on CoreWeave's services, this could substantially impact CoreWeave's future revenue.

Impact on Associated Companies

The impending IPO, alongside CoreWeave's relationship with Nvidia and Microsoft, will likely have ripple effects on their stock prices. Nvidia, being a substantial investor in CoreWeave and a technology supplier, stands to gain from CoreWeave's success but may also face challenges if CoreWeave's performance falters. Furthermore, as Microsoft develops its AI capabilities, its reliance on CoreWeave could diminish, impacting both companies.

Stocks: NVDA MSFT