Stocks in general had a rough week, with the major U.S. indexes all dropping at least 1% this week. One stock that resisted those headwinds was artificial intelligence (AI) name CoreWeave (CRWV +6.29%).
Shares of the specialized cloud provider jumped 11.1% this week, according to data provided by S&P Global Market Intelligence. Company news from the prior week and sector news this week helped push the stock higher.
Image source: The Motley Fool.
Cloud infrastructure demand remains high
Regardless of economic and geopolitical changes, the need for cloud compute capacity remains very strong. CoreWeave recently announced a deal with AI-powered research company Perplexity to power that company's newest inference workloads. Perplexity chief business officer Dmitry Shevelenko stated, "We were impressed by the combination of CoreWeave's technical aptitude and partner-first mindset that help AI-native companies accelerate their growth and scaling goals."
Another catalyst for the stock was news that Nvidia (NVDA +3.75%), already a significant minority stakeholder in CoreWeave, invested $2 billion in competing AI infrastructure company Nebius Group this week.
NASDAQ: CRWV
Key Data Points
Considering its existing relationship with CoreWeave, investors took that news as a sign of confidence from the AI leader that demand for data center capacity is still accelerating. CoreWeave should continue to fill its capacity, which might bode well for the stock in the short- and medium-term, at least.
