Key Points

• CoreWeave raised $1.5 billion during its Nasdaq debut, pricing shares at $40 but opened lower at $39.
• Nvidia supported the IPO with a $250 million order, yet investor feelings were cautious due to concerns over the company’s debt and client concentration.
• The listing arose as technology stocks face pressure amid U.S. tariffs and trepidation regarding AI investments.

Market Performance

On its first day, CoreWeave (CRWV) shares commenced at $39, slightly below its expected IPO price from Thursday night’s trading.

The company sold about 37.5 million shares at $40 each, marking a substantial offering in the tech sector since 2021. However, the initial range was projected between $47 and $55, indicating doubts about its valuation based on market conditions.

Nvidia, an early investor, placed a significant $250 million order within the offering, which raised some eyebrows among analysts concerned about CoreWeave’s long-term sustainability due to high debt and limited customer diversification.

Prominent columnist Dave Lee observed that CoreWeave could be indicative of broader trends in the AI sector, suggesting:

“CoreWeave is a must-watch stock as concerns around AI investments grow more pressing.”

This risk-averse climate can be attributed to recent tariffs imposed by President Donald Trump, which have negatively impacted tech stocks overall.