A hot new stock begins trading on March 28, potentially offering a big opportunity to investors.
%ArtificialIntelligence (A.I.) start-up company %CoreWeave is about to start trading on the Nasdaq exchange under the ticker symbol “CRWV.”
The company has set the pricing for its initial public offering (IPO) at $47 U.S. to $55 U.S. per share and management hoped to raise $2.3 billion U.S. to $2.7 billion U.S. from the share sale.
The IPO is one of the most anticipated on Wall Street and the biggest technology IPO since social media company %Reddit (NYSE: $RDDT) went public in March of last year.
However, unlike Reddit, CoreWeave participates in what is arguably the hottest area of the market right now: A.I.
Founded in 2017, New Jersey-based CoreWeave provides access to data centres and high-powered microchips that facilitate A.I. workloads.
CoreWeave counts %Nvidia (NASDAQ: $NVDA) as one of its early investors, and lists %Microsoft (NASDAQ: $MSFT) and Amazon (AMZN) as competitors in the cloud computing space.
As for its customers, CoreWeave says it provides products and services to technology giants such as Meta Platforms (META) and IBM (IBM).
With so many big names being thrown around, CoreWeave’s IPO has, understandably, generated a lot of buzz.
However, as with all new stock listings, the CoreWeave IPO is not without risks.
In its IPO filing, CoreWeave reported revenue of $1.92 billion U.S. in 2024, up from $228.9 million U.S. a year earlier.
While sales are growing rapidly, the company remains unprofitable, reporting a net loss of $863.4 million U.S. last year, up from a loss of $593.7 million U.S. in 2023.
CoreWeave was most recently valued at about $20 billion U.S. How the company’s stock performs when it starts trading and where its market capitalization ends up remains to be seen.
But the fact that CoreWeave is at the centre of the A.I. boom, and demand for A.I. infrastructure such as data centres, high-powered servers, and cloud platforms remains strong, makes the company’s IPO intriguing and worth consideration.
