Nvidia owns 11% of this neocloud stock: should you buy in too?

Nvidia’s stake in a fast-growing artificial intelligence infrastructure company is drawing renewed attention from investors across Wall Street.

That attention intensified after the AI chip giant nearly doubled its holdings in CoreWeave, one of the hottest names in the AI infrastructure trade.

The company operates a GPU-as-a-service “neocloud” platform, renting high-performance AI computing power to customers struggling to secure enough capacity.

Nvidia’s holding now stands at about 47.2 million CoreWeave shares, roughly 11% of the company, worth close to $4.9 billion at current prices.

Numbers behind Nvidia’s big bet

Nvidia’s position in CoreWeave jumped as the chipmaker had previously held about 24.3 million shares, or roughly 6.3% of the company.

In January, Nvidia agreed to invest another $2 billion at $87.20 per share, adding roughly 23 million shares and nearly doubling its position.

By the end of Q1, that put Nvidia’s stake at about 47.2 million shares, a major vote of confidence from the company whose GPUs power much of CoreWeave’s business.

The timing is not hard to understand as CoreWeave’s Q1 2026 results showed revenue of $2.1 billion, up from $982 million a year earlier, while revenue backlog reached $99.4 billion as of March 31.

In simple words, backlog is contracted future revenue.

For a company racing to build data centers, it gives investors visibility into demand before the revenue actually hits the income statement.

What Wall Street is saying

CoreWeave is one of the few companies with the Nvidia supply, power access, and customer demand to scale in the AI infrastructure boom.

Wells Fargo’s Michael Turrin raised his price target to $155 from $135 and kept an Overweight rating after Q1, noting that CoreWeave “continues to execute” with nearly $100 billion of backlog and more than 1GW of active capacity.

Bank of America’s Tal Liani has also stayed bullish, maintaining a $140 price target after Q1 and pointing to strong data center execution, backlog growth and rising demand for AI inference workloads.

Jefferies’ Brent Thill is even more optimistic, with a $160 target.

His view is that CoreWeave’s valuation remains compelling relative to its strategic importance in a multi-trillion-dollar AI infrastructure opportunity.

But this is not a clean, risk-free growth story.

DA Davidson’s latest call is the caution flag as the firm moved to Neutral and cut its target to $100 from $175, according to MarketBeat’s analyst tracker.

The concern is familiar: CoreWeave is growing fast, but it is doing so with heavy capital spending, thin current profitability, and a balance sheet that depends heavily on debt and financing.

CoreWeave stock: Should you buy?

Bullish analysts frame CoreWeave as one of the more direct public-market ways to gain exposure to the AI infrastructure buildout, citing its nearly $100 billion backlog, Nvidia relationship and expanding active power capacity.

Wells Fargo, Bank of America and Jefferies all remain constructive, with price targets ranging from $140 to $160 after Q1.

The opposing view is that the growth story comes with unusually high execution and financing risk.

CoreWeave remains GAAP loss-making, reported $740 million of net loss in Q1, carried about $24.9 billion of debt at quarter-end, and is guiding for $31 billion to $35 billion of 2026 capital expenditures.

DA Davidson’s downgrade to Neutral and $100 target reflects that more cautious camp.