CoreWeave (CRWV) shares surged nearly 8% early Wednesday to $90.00 after Galaxy Digital completed the first phase of its Helios AI data center campus in West Texas. The facility brought 200 MW of power online—with 133 MW of critical IT capacity leased to CoreWeave under a 15-year deal—reinforcing confidence in long‑term AI infrastructure demand. Galaxy Digital CEO Mike Novogratz called the AI computing boom a lasting transformation, not a temporary trend.
The rally, which saw an intraday high of $90.15, came as investors looked past last week’s selloff triggered by reports Meta could enter the AI cloud market. CoreWeave also highlighted a technical milestone: alongside engineering software firm nTop, it completed 10,000 large‑eddy simulations in 32 hours on 280 Nvidia GPUs, hitting a NASA CFD Vision 2030 target years early. Analysts at Wolfe Research reiterated an Outperform rating with a $150 target, citing a backlog expected to reach $110‑$115 billion for Q2 2026.
However, the optimism faded quickly. By Tuesday’s close, CRWV had dropped 3.4% to $83.53, touching an intraday low of $79.46. The decline reflected renewed concern over Meta’s potential AI cloud service—which could compete with CoreWeave—and a stream of insider sales exceeding $3 billion in the last 90 days, though most were tax‑related transactions under 10b5‑1 plans. The stock remains down 41% over the past year, and a Q1 earnings miss (EPS -$1.40 vs. -$1.17 expected) still weighs on sentiment, despite revenue jumping 111.6% to $2.08 billion.
Wall Street maintains a Moderate Buy consensus with an average price target of $135. Rosenblatt kept a $250 target, arguing the Meta threat is exaggerated. Nevertheless, the mixed signals left CoreWeave caught between strong AI demand and competitive pressures, underscoring the volatile path for AI neocloud providers.
