Artificial intelligence (AI) stocks have soared in recent years, but the path for some hasn't been linear. While they've delivered great gains, they've also been through rough patches, falling significantly -- and even prompting concern that growth may be tapering off.
That was the case of CoreWeave (CRWV 1.70%) over the past several months. The company launched its initial public offering in March and rose more than 300% in the months that followed. But as 2025 wore on, the stock progressively slipped.
However, this tech stock now is showing us that it refuses to stay down. Let's check out this exciting AI story.
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CoreWeave is serving a major need
So, first, a quick look at CoreWeave's business. The company offers something that's in high demand right now, and that's capacity for AI workloads. Customers may come to CoreWeave for access to its enormous fleet of Nvidia graphics processing units (GPUs). This allows customers to power their AI projects without the expensive and time-consuming step of building out their own infrastructure. They can use CoreWeave's material for a few hours or for much longer periods according to their needs.
This has resulted in triple-digit revenue growth for the company and contracts to serve the needs of tech giants such as Meta Platforms and OpenAI.
CoreWeave's relationship with Nvidia also is a plus. Nvidia as of last year held about 7% of the company and just recently the chip giant made a fresh purchase of CoreWeave stock. Nvidia invested $2 billion in Class A common stock, a move to help support CoreWeave's plan to build out 5 gigawatts of AI factories by 2030.
Nvidia last year also committed to buying any leftover CoreWeave capacity through April 2032.
NASDAQ: CRWV
Key Data Points
Why did the stock fall?
So, considering all of this, why did the stock lose momentum in the latter part of 2025? Investors worried about the debt levels CoreWeave would need to build to meet AI demand. Any possible slowdown in AI spending, could delay potential profitability and hurt the stock -- and CoreWeave would be left with a wall of debt. And some investors considered that AI stocks had climbed too far too fast, and that an AI bubble may take shape.
Still, these worries didn't keep CoreWeave down for long. Even after last year's dip, the stock has climbed 172% since its IPO and has gained more than 50% since the start of this year. CoreWeave does come with some risk as its potential success is linked to ongoing AI spending -- but, if the AI story progresses as expected, CoreWeave may continue to soar in the months to come.
