CoreWeave Inc. (NASDAQ: CRWV) shares rose 3.26% to $89.06 on Tuesday, buoyed by a strategic partnership with Rescale and an upgraded price target from Truist Securities.

The broader market provided supportive tailwinds, with the Nasdaq gaining 0.42% and the S&P 500 rising 0.14%. Technology led all sectors with a 0.7% advance, while the Russell 2000 rose 0.32% and the Dow gained 0.10%.

Partnership Details

CoreWeave announced that Rescale will expand its cloud ecosystem onto the CoreWeave platform. The integration targets engineering and artificial intelligence simulation workloads used in product development across aerospace, automotive, energy, life sciences, and manufacturing sectors.

Rescale’s platform combines computing infrastructure, simulation software, and AI tools. By leveraging CoreWeave’s Kubernetes Service, engineering teams can run distributed simulations and AI models without managing underlying infrastructure. This gives customers access to CoreWeave’s cloud services for generative AI and high-performance computing.

Analyst Outlook

Truist Securities analyst Arvind Ramnani maintained a Buy rating on CoreWeave on Monday, raising his price forecast from $155 to $165.

Other recent analyst actions include:

• Goldman Sachs maintained a Neutral rating and lifted its forecast to $139 on Aug. 21.
• Citigroup maintained a Buy rating and increased its forecast to $159 on Aug. 14.

CoreWeave carries a Buy consensus rating with an average price forecast of $144.11.

Technical Analysis

The stock remains in a longer-term recovery phase, trading 11.3% below its 100-day simple moving average (SMA) and 3.9% below its 200-day SMA. However, the 20-day SMA has moved above the 50-day SMA, suggesting the recent decline has stabilized.

Key technical levels include:

• Resistance near $94.50
• Support around $87

The relative strength index stands at 48.54, signaling neutral momentum. A July death cross, where the 50-day SMA fell below the 200-day SMA, remains a concern. CoreWeave shares have declined 4.78% over the past 12 months.

ETF Exposure

CoreWeave holds significant weightings in several key ETFs:

• Renaissance IPO ETF (NYSE: IPO): 7.22%
• iShares Future AI & Tech ETF (NYSE: ARTY): 4.05%
• Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (BATS: GSEW): 0.23%

Fund inflows or outflows in these vehicles can create additional buying or selling pressure.

CoreWeave Inc. has secured a multibillion-dollar multiyear agreement with Hudson River Trading (HRT), intensifying Wall Street's race for the newest AI chips from Nvidia Corp. CoreWeave Chief Revenue Officer Jon Jones called the deal "a material expansion" of an existing partnership.

Partnership details

Under the agreement, HRT will gain access to Nvidia's Vera Rubin and B200 systems through CoreWeave's purpose-built AI cloud platform. CoreWeave says it was the first AI cloud provider to validate Nvidia's Vera Rubin NVL72 platform, supported by Spectrum-X Ethernet networking. The infrastructure is designed to enable HRT to scale its AI-driven trading research and model development capabilities.

Kevin Lee, Hudson River's head of research and development, said giving researchers access to the latest AI technology is what "lets a research team like ours push further, faster."

Wall Street's AI arms race

HRT uses AI computing power to train trading models, test strategies, and search vast datasets for profitable patterns. The firm has significant financial resources to support this investment, having generated a record $11.4 billion in second-quarter trading revenue and $7.4 billion in profit. The deal follows rival Jane Street's $6 billion commitment to CoreWeave's AI cloud and a separate $1 billion investment in the company. CoreWeave has also added trading firms Flow Traders and IMC as customers.

Nvidia chips give CoreWeave pricing power

HRT will also use Nvidia B200 chips, which currently rent for $6.87 per hour according to the Ornn index. CoreWeave raised prices approximately 25% in July and expects newer contracts to deliver contribution margins 5 to 10 percentage points higher than earlier agreements.

Powering growth and reducing customer risk

Meeting demand requires securing sufficient electricity to expand CoreWeave's data centers. The company finished the second quarter with approximately 3.7 gigawatts of contracted power capacity.

The agreement also comes as CoreWeave works to diversify its revenue base. Its largest customer accounted for 36% of second-quarter sales, compared with 71% for its biggest customer a year earlier. Its top three customers still generated approximately 72% of revenue.