KEY TAKEAWAYS
- Shares in CoreWeave, a cloud computing company backed by Nvidia, fell on their market debut Friday, following a $1.5 billion initial public offering.
- Shares of CoreWeave, trading on the Nasdaq under the ticker CRWV, opened at $39 Friday, below its IPO price of $40 per share.
- The IPO is the largest in the U.S. since the $1.75 billion listing by LNG exporter Venture Global in January, according to Dealogic.
Shares in CoreWeave (CRWV), a cloud computing company backed by Nvidia (NVDA), slipped on their market debut following a $1.5 billion initial public offering that priced below its expected range.
Shares of CoreWeave opened at $39 Friday, below its IPO price of $40 per share. It recently traded a bit above $37.
The company’s IPO pricing lagged the expected range of $47 to $55 per share. CoreWeave, which makes money by providing its clients with access to data centers, had also cut the deal’s size, selling 37.5 million shares, fewer than the 49 million previously anticipated.
Data centers are used to develop artificial intelligence models. The company, which relies on Microsoft (MSFT) for a large portion of its sales, also depends on Nvidia chips for its business.
The IPO is the largest by a tech firm in the U.S. since the $5.2 billion offering by chip designer Arm Holdings (ARM) in September 2023, according to Dealogic, and the largest in the U.S. since the $1.75 billion listing by LNG exporter Venture Global in January.
CoreWeave was founded in 2017 as a crypto miner before pivoting to selling cloud infrastructure.
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