CoreWeave, the AI cloud infrastructure company that has become Wall Street's favorite pure-play on artificial intelligence demand, delivered a powerful rebuttal to skeptics on Monday. Shares surged 12.22% to close at $89.93 after CEO Michael Intrator addressed mounting concerns about GPU depreciation and unveiled plans to deploy Nvidia's next-generation Rubin architecture.
The rally extended CoreWeave's remarkable run since its 2025 IPO, with shares now up 125% from their offering price. Trading volume hit 42.1 million shares—nearly 50% above the three-month average—signaling renewed institutional interest in the AI infrastructure leader.
The GPU Lifespan Question
CoreWeave had faced growing investor anxiety over how quickly its massive GPU fleet might depreciate as newer, more powerful chips emerge. In a podcast appearance that sent shares higher, Intrator and other executives directly confronted these concerns.
The core argument: CoreWeave's purpose-built infrastructure and deep Nvidia partnership create a moat that extends the useful life of its GPU inventory while positioning the company to quickly adopt next-generation hardware.
"Our architecture is specifically designed for AI workloads, not retrofitted from general-purpose cloud infrastructure. That means we extract more value from each GPU generation while maintaining the flexibility to upgrade as technology advances."
— Michael Intrator, CoreWeave CEO
Rubin: The Next Frontier
Perhaps more significant than the lifespan discussion was CoreWeave's announcement that it will be among the first cloud providers to deploy Nvidia's Rubin AI architecture in the second half of 2026. Rubin represents Nvidia's next major leap in AI computing, designed specifically for agentic AI and large-scale inference workloads.
The announcement cements CoreWeave's position as Nvidia's preferred cloud partner—a relationship that has defined the company's rise. Nvidia holds a meaningful minority stake in CoreWeave, creating alignment between the hardware giant and its infrastructure partner.
The $55.6 Billion Backlog
CoreWeave's fundamentals continue to justify investor enthusiasm. The company's revenue backlog jumped nearly fourfold to $55.6 billion in the third quarter, providing exceptional visibility into future growth. Analysts expect revenue to more than double from $5.1 billion in 2025 to approximately $12 billion in 2026.
The customer roster reads like a who's who of AI development: OpenAI, Microsoft, Meta, and Google all rely on CoreWeave's infrastructure for AI workloads. This concentration of premier customers has helped CoreWeave command premium pricing while building long-term contracted relationships.
Analyst Views Remain Mixed
Despite Monday's surge, Wall Street opinion on CoreWeave remains divided. Truist Securities analyst Arvind Ramnani initiated coverage with a Hold rating and $84 price target, citing concerns about the company's leverage and capital expenditure requirements.
Goldman Sachs analyst Gabriela Borges took a similarly cautious stance with a Neutral rating and $86 target, though she acknowledged CoreWeave's "purpose-built architecture" provides "a significant competitive advantage against traditional hyperscalers."
The bull case centers on CoreWeave's unique positioning: purpose-built for AI, deeply integrated with Nvidia, and serving the most demanding customers in the world. The bear case focuses on the capital intensity of the business and the risk that hyperscalers eventually catch up.
Genesis Mission Partnership
Adding to the positive sentiment, CoreWeave recently announced it joined the Department of Energy's Genesis Mission, leveraging its AI cloud platform to accelerate U.S. scientific discovery, national security research, and energy innovation. The government partnership adds credibility and diversifies CoreWeave's customer base beyond commercial AI developers.
For investors, Monday's surge offered validation that CoreWeave's thesis remains intact: AI infrastructure demand is accelerating, and few companies are better positioned to capitalize than the GPU cloud pioneer. Whether the stock can maintain these lofty levels will depend on execution—and whether the AI boom continues to exceed even the most optimistic expectations.
