CoreWeave IPO Could Revitalize the Tech Market, Experts Say
Two months into 2025, the financial markets, especially within the technology sector, are experiencing a complex period. Several prominent companies, including Tesla (TSLA) and Microsoft (MSFT), have faced challenges amid growing economic uncertainty. While Nvidia (NVDA) presented a strong Q4 earnings report, its stock has been volatile, even after CEO Jensen Huang’s optimistic forecast for the year. With many of the leading tech stocks underperforming, investors are turning their attention to smaller capitalization opportunities, with a focus on potential tech startups preparing to go public in the near future.
Since the beginning of the year, there haven’t been any significant initial public offerings (IPOs). However, this situation could soon change, particularly with a company that has a strong relationship with Nvidia. Discussions are swirling around a tech company, which analysts have been keeping a close eye on for some time, is preparing for its IPO.
CoreWeave: The AI Hyperscaler
For months, experts have speculated on the year’s most significant IPO. Given the current lack of major companies going public, there’s considerable discussion about which company could take the lead. The answer might be CoreWeave, a company that describes itself as “The AI Hyperscaler.” Known within the artificial intelligence (AI) field, the startup provides data-intensive AI workload infrastructure and offers a wide range of AI and data storage services.
Founded in 2017, CoreWeave has a close relationship with Nvidia. In 2023, it was the first cloud computing company to deploy the NVIDIA H200 Tensor Core graphics processing unit (GPU). Nvidia invested $100 million in the startup that same year. As investors seek the next big opportunity, CoreWeave’s name has come up repeatedly, with analysts wondering when it would launch its IPO. The Financial Times reported that the company is preparing to file for an IPO by next week with the aim of raising $4 billion, targeting a $35 billion valuation.
Expert Commentary and Market Impact
Experts are enthusiastic about the potential of a CoreWeave IPO, seeing it as a positive development for the tech market. Mark Klein, CEO of SuRo Capital SSS, shared his firm’s optimistic outlook on the company with TheStreet.
Klein expressed his initial impression of CoreWeave’s “extraordinary” business model, stating:
The demand for compute and the supply of compute was the most disproportionate ratio of almost anything I’ve seen in the close to 40 years that I’ve been in the business.
He also underscored CoreWeave’s history with Nvidia.
“They were always going to get a large allocation of the next-gen chip, as they did with the Blackwell shipment. You put that all together, you see where they were set up, and the contracts that they have had and continue to get that are long term contracts,” Klein explained.
In December 2024, as the anticipation for a CoreWeave IPO grew, Deutsche Bank analyst David Folkerts-Landau proposed it could be the boost that the lagging tech market truly needed. Mark Klein, however, is confident in the CoreWeave IPO’s success.
“I think that Coreweave having a successful offering, which we’re really confident that they will have, will certainly give bankers and other companies comfort that bringing really good companies priced appropriately to the public markets will be very well received,” he said.
