Group 1 - Lambda, a cloud computing company providing hardware and services for AI enterprises, is preparing for an initial public offering (IPO) possibly in the first half of 2026 [1] - The company has hired JPMorgan, Morgan Stanley, and Citigroup to assist with the IPO process [1] - Earlier this year, Lambda raised $480 million in a Series D funding round led by Andra Capital and SGW, with participation from notable investors including NVIDIA [1] Group 2 - Lambda offers access to NVIDIA clusters and recently launched NVIDIA's SHARP protocol in its multi-tenant environment to enhance bandwidth efficiency and reduce communication latency [1] - NVIDIA is both a supporter and customer of Lambda, agreeing to rent 10,000 self-developed AI chips for $1.3 billion over four years [1] - Lambda competes with CoreWeave, which went public in March 2025 and has seen its stock price more than double since the IPO [2]

Core Viewpoint - CoreWeave stock is experiencing a sell-off as investors express concerns regarding the company's potential growth opportunities [1] Company Updates - The stock price of CoreWeave (CRWV) decreased by 3.69% in after-market trading on August 29, 2025 [1]

Core Viewpoint - Nvidia has invested significantly in CoreWeave, holding $3.96 billion in shares, indicating strong belief in its potential [2] Company Overview - CoreWeave, a tech company that went public in March, provides access to a large fleet of Nvidia's AI chips, which has driven its revenue growth [2] - The company offers around 250,000 Nvidia GPUs across more than 30 data centers, specifically designed for AI applications, providing speed and flexibility to customers [5][6] Market Performance - CoreWeave's shares surged over 350% from its IPO in March to a peak in June, but have since declined about 50% due to concerns over a billion-dollar acquisition and a larger-than-expected quarterly loss [3] Customer Demand - The company reported "aggressively growing" demand for its AI cloud services, with an increase in customers across various industries [7] - Two major cloud service providers have expanded their agreements with CoreWeave, indicating positive momentum [7] Financial Guidance - CoreWeave raised its full-year revenue guidance to $5.15 billion to $5.35 billion, an increase of $250 million from previous forecasts, driven by strong demand and AI growth prospects [8] Financial Challenges - In the second quarter, CoreWeave reported a loss per share of 60 cents, missing analysts' expectations of a 20-cent loss [9] - Concerns exist regarding the company's plan to acquire Core Scientific, which could lead to near-term costs despite being an all-stock deal [10] Strategic Considerations - The acquisition of Core Scientific could provide long-term benefits by reducing lease liabilities and enhancing infrastructure, although it adds uncertainty in the short term [11] - The decision to invest in CoreWeave may depend on the investor's risk tolerance, with potential for growth amid ongoing AI market expansion [12]

Core Acquisition Risk - CoreWeave plans to acquire Core Scientific to enhance its high-performance data center infrastructure, but the deal is at risk due to investor reactions [1][3] - The acquisition has a total equity value of approximately $9 billion and is structured as an all-stock deal to avoid additional debt [3] Financial Performance and Investment - CoreWeave is investing heavily in its internal business, with plans to invest over $6 billion in a new data center in Pennsylvania [4] - Following a disappointing quarterly report on August 12, CoreWeave's stock has dropped nearly 40% since the earnings release [4] Shareholder Opposition - The all-stock structure of the acquisition makes it vulnerable to falling share prices, leading to opposition from at least one large shareholder of Core Scientific [5] - Two Seas Capital, the largest active shareholder of Core Scientific, owns about 6.3% of the company and has publicly opposed the deal, which could lead to costly renegotiations for CoreWeave [6]

Core Viewpoint - CoreWeave's stock is experiencing a significant decline due to uncertainties surrounding a critical acquisition deal with Core Scientific, which is essential for its growth [1][5]. Acquisition Deal - CoreWeave had planned to acquire Core Scientific to enhance its data center capacity amid rising demand for AI infrastructure [2]. - The acquisition was structured as an all-stock deal valued at $9 billion, but CoreWeave's stock has since dropped nearly 50%, reducing the deal's notional value [3]. - Some shareholders of Core Scientific have expressed opposition to the deal unless terms are renegotiated, raising concerns about its completion [3]. Investor Sentiment - The potential failure of the acquisition or the possibility of CoreWeave needing to pay more than anticipated has created anxiety among investors [5]. - Despite being a prominent player in AI cloud computing, the company faces significant financial risks due to the high costs associated with building AI infrastructure [6].

Core View - Nvidia's portfolio stocks experienced a significant decline, indicating potential market volatility and investor sentiment shifts [1] Group 1: Stock Performance - CoreWeave (CRWV.US) dropped over 9% [1] - Arm Holdings (ARM.US) fell more than 4% [1] - Applied Digital Corporation (APLD.US) decreased by over 4% [1] - Nebius (NBIS.US) declined more than 5% [1] - Recursion Pharmaceuticals (RXRX.US) saw a drop of over 2% [1]

Core View - Nvidia's portfolio stocks experienced a significant decline, with CoreWeave dropping over 9% and Arm Holdings falling more than 4% [1] Company Performance - CoreWeave (CRWV.US) saw a decline of over 9% [1] - Arm Holdings (ARM.US) decreased by more than 4% [1] - Applied Digital Corporation (APLD.US) fell by over 4% [1] - Nebius (NBIS.US) dropped more than 5% [1] - Recursion Pharmaceuticals (RXRX.US) experienced a decline of over 2% [1]

Core Viewpoint - Post-pandemic IPO activity has shown significant fluctuations due to economic uncertainty, rising interest rates, and inflation, but there has been a positive shift in the market with notable IPOs like CoreWeave (CRWV) and Circle Internet Group (CRCL) indicating renewed investor confidence [1][8] Group 1: CoreWeave (CRWV) - CoreWeave is backed by NVIDIA, which holds a $900 million stake, making it one of the largest investors [3] - The company has experienced a remarkable 300% year-over-year increase in sales, with a revenue backlog of $30.1 billion [4] - CRWV shares have appreciated by 150% since their debut, providing substantial returns to shareholders [5] Group 2: Circle Internet Group (CRCL) - Circle is a global fintech firm that issues USDC, the second-largest dollar-pegged stablecoin, facilitating digital currency transactions [6] - The company's shares have increased nearly 60% since their debut, although initial gains have diminished [6] - Circle's business model aims to transform traditional money into digital formats, enhancing global financial opportunities [6][10] Group 3: Market Trends - The IPO market is witnessing a resurgence in 2025, with CRWV and CRCL representing two significant IPOs that reflect a shift in market sentiment [1][11] - Both stocks have shown substantial gains since their initial offerings but remain below their peak values [8][11]

Core Insights - CoreWeave, Inc. (CRWV) is experiencing significant growth in healthcare and finance sectors, transitioning from pilot projects to full-scale deployments, with a contracted backlog of $30.1 billion at the end of Q2 2025, an increase of $4 billion from Q1 and doubling year-to-date [1][8] - The company has secured partnerships with notable clients such as Hippocratic AI in healthcare and major banks like Morgan Stanley and Goldman Sachs in finance, indicating a diverse customer base [2][8] - CoreWeave's VFX cloud service, Conductor, saw usage increase more than fourfold in the first half of 2025, highlighting its impact in media and entertainment [3] Industry Demand and Infrastructure - The demand for CoreWeave's cloud solutions is rapidly increasing across various industries, driven by the need for high-performance infrastructure for AI training and inference [4] - The company has deployed NVIDIA's GB200 NVL72 and HGX B200 at scale, integrated into its Mission Control system, which is crucial for automated lifecycle management and reliability [4] - CoreWeave has expanded its object storage portfolio and introduced new solutions, including the CoreWeave–Weights & Biases Inference service, compatible with leading open-source models [5] Financial Outlook - Management has raised the 2025 revenue guidance to $5.15–$5.35 billion, up from the previous estimate of $4.9 billion to $5.1 billion, reflecting strong demand and a robust customer pipeline [6][8] - For Q3 2025, CRWV projects revenues between $1.26 billion and $1.3 billion, indicating continued growth [6] Competitive Landscape - CoreWeave faces competition from companies like Nebius Group N.V. and Microsoft Corporation, both of which are also expanding their AI cloud services [6][10] - Nebius reported a ninefold increase in AI cloud infrastructure revenues year-over-year, showcasing the competitive environment in the AI sector [7] Stock Performance and Valuation - CoreWeave's shares have increased by 152.3% over the past six months, significantly outperforming the Internet Software industry, which grew by 12.6% [11] - The company's shares are trading at a Price/Book ratio of 17.72X, considerably higher than the industry average of 6.57X, indicating a premium valuation [12]

Core Thesis - CoreWeave's stock has surpassed $100 following Cantor Fitzgerald's Overweight rating and a $116 price target, driven by the trillion-dollar AI infrastructure opportunity, with shares up 160% year-to-date [2] - The potential for CoreWeave to double its stock price beyond $200 is linked to its exceptional growth trajectory, with revenues projected to increase from $3.5 billion to over $12 billion next year, indicating triple-digit growth [3] Valuation Insights - Although the stock trades at approximately 14x trailing revenue, this multiple is expected to compress as sales surge, with a potential price per share exceeding $200 if revenues reach $12 billion and the P/S ratio normalizes to the 8-10x range [4] Key Growth Drivers - CoreWeave has secured a significant revenue backlog of about $30 billion, bolstered by major contracts including an $11.9 billion deal with OpenAI and a subsequent $4 billion expansion [5] - The company is positioned as a market leader in AI infrastructure, leveraging specialized GPU compute technology built around NVIDIA hardware to capture a significant share of the trillion-dollar AI infrastructure market [5] - Revenue growth has been substantial, with a 420% year-over-year increase to $981.6 million in Q1 and a 207% increase to $1.2 billion in Q2, demonstrating the company's ability to convert demand into sales [5] - CoreWeave is expanding its platform beyond GPU compute into storage, networking, and managed services, highlighted by the $1.4 billion acquisition of Weights and Biases to enhance its AI infrastructure offerings [5]