CoreWeave Shares Decline Nearly 10% in Second Trading Day

Michael Intrator, the Founder & CEO of CoreWeave, Inc., a cloud services provider backed by Nvidia, was present at his company's IPO at the Nasdaq Market in New York City on March 28, 2025.

CoreWeave's stock fell almost 10% on Monday, which pushed it below its initial public offering (IPO) price.

The company offered its shares at $40, but they opened at $39 during their debut on Friday and closed the day at $40.

This public offering marked the largest tech IPO since 2021 and was the first pure-play AI company to go public. The share sale generated $1.5 billion, making it the biggest U.S. IPO since the automation software firm UiPath raised $1.57 billion in 2021.

The IPO also acted as a crucial test for a stock market that has been largely quiet since early 2022 due to concerns over inflation and increasing interest rates, which have made investors more cautious about risky investments.

Market Conditions and Challenges

There were high expectations that the political landscape under President Donald Trump would create a more favorable environment for IPOs. However, new tariffs have created economic uncertainty and reduced investor interest in technology stocks. As a result, the tech-heavy Nasdaq Composite index has dropped over 10% this year.

Despite these challenges, CoreWeave joins a growing list of tech companies seeking to go public, including firms like Klarna and the ticket reseller StubHub.

Company Performance and Revenue

Initially, CoreWeave aimed for a price target of $47 to $55 per share, which would have raised about $2.5 billion. But they reduced the offering size from 49 million shares to 37.5 million due to market conditions.

Michael Intrator, CEO of CoreWeave, commented on CNBC's "Squawk Box" that the company had to adjust the transaction size according to current buying interest, saying, "There's a lot of headwinds in the macro. And we definitely had to scale or rightsize the transaction for where the buying interest was."

CoreWeave provides access to hundreds of thousands of Nvidia graphics processing units (GPUs) to major tech and AI firms, including Meta, IBM, and Cohere. Microsoft is its largest customer, accounting for 62% of the company's revenue last year. Competitors include Amazon, Google, and Oracle.

The company was originally established as Atlantic Crypto in 2017 and focused on providing infrastructure for ethereum mining. However, after cryptocurrency values fell, it pivoted towards artificial intelligence and accumulated more GPUs, thereby changing its name and business focus.

In its prospectus, CoreWeave stated that revenue surged over 737% last year, reaching $1.92 billion, although the company also reported a net loss of $863 million.

— Reporting contributed by Jordan Novet

CoreWeave, IPO, Nvidia