Editor’s Note: Jeff Brown called Nvidia back in 2016 — years before most investors heard of it. He was early on Bitcoin, Tesla, and numerous other technology stocks as well. Now, he has an urgent update on the AI bubble that might surprise you. Click here for the details or read more below.
Dear Reader,
The Trump administration has made a habit of investing directly in companies critical to America’s future and security.
And every time, the stock went up in the immediate aftermath.
Like Lithium Americas…
Intel…
And MP Materials...
Now, rumors are rampant that the U.S. government is about to put serious money into a breakthrough technology.
It’s 58,000 times more powerful than AI.
It could create over $1.3 trillion in wealth over the next few years.
Google, Amazon and Nvidia are already heavily invested.
And now the U.S. government could soon follow.
Click here to find out more about Trump’s next big investment.
Regards,
Jeff Brown
Founder & CEO, Brownstone Research
CoreWeave's NVIDIA Boost Fueled a Rally—Now Comes the Hard Part
Author: Sam Quirke. Publication Date: 1/28/2026.
At a Glance
- NVIDIA’s $2 billion investment has sharply divided opinion, with bears flagging new strategic risks while bulls see it as a powerful validation of CoreWeave’s long-term potential.
- The stock’s strong rally since the announcement suggests investors are already leaning toward the bullish interpretation.
- With earnings due in February, CoreWeave will be a closely watched stock for the next couple of weeks.
Shares of tech giant CoreWeave Inc. (NASDAQ: CRWV) are trading just under $110 after a solid start to the year. The stock is up nearly 70% since before Christmas and added another 17% this week following NVIDIA Corp.'s $2 billion investment to support the build-out of more than five gigawatts of AI infrastructure.
At first glance, that headline looks like a no-brainer win. But a closer look shows why opinion is split. Some analysts see the deal as overdue validation of CoreWeave's strategic importance in the AI stack, while others view it as a warning sign about financial fragility and overreliance on a single patron. With the stock already running hot, how investors interpret this divide could shape where CoreWeave trades through the rest of the quarter.
The Bear Case: NVIDIA's Investment Doesn't Remove CoreWeave's Risks
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Discover how to invest in the fund Trump uses to collect this income >>The cautious camp responded quickly to the NVIDIA news. Analysts at firms such as Macquarie, Mizuho, and Needham reiterated Neutral or equivalent ratings, arguing the investment does not fundamentally change the company's risk profile. Their core concern is that the deal looks less like a strategic investment and more like a short-term lifeline.
From their perspective, NVIDIA stepping in highlights how constrained CoreWeave's funding options have become. The company was already paying more than $300 million per quarter in interest — a figure that represents more than 20% of revenue. Receiving equity-based financing suggests that tapping debt markets may no longer be a viable option right now.
There is also unease around vendor concentration. By tying itself closely to NVIDIA at a time when NVIDIA's prospects are being closely watched, CoreWeave increases its exposure to shifts in its partner's competitive position. In other words, if NVIDIA stumbles, CoreWeave could feel the impact quickly.
The Bull Case: Strategic Validation and Upside Potential
The bullish view sees the investment as a clear vote of confidence and validation of CoreWeave's potential. Analysts at Deutsche Bank, for example, upgraded the stock from Hold to Buy after the announcement and raised their price target to $140, implying roughly 30% upside from current levels.
They argue that NVIDIA would not commit capital at this scale without strong visibility into future demand. Rather than signaling weakness, the deal could be interpreted as strategic alignment — securing supply, accelerating deployment, and ensuring CoreWeave remains a key infrastructure partner as AI workloads scale.
There is also the stock's ongoing momentum to consider. CoreWeave's shares had been rallying in the weeks before the announcement, indicating demand from Wall Street to get in position ahead of further gains. The 17% pop this week reinforces the argument that the move is being viewed as a fresh bullish catalyst, not a bailout.
What to Expect Heading Into February
Over the coming months, CoreWeave will need to execute. Near-term performance will matter most: the company must translate this backing into disciplined growth, manage cash flow, and reduce the drag from financing costs.
Bulls will welcome the stock's jump, but momentum indicators are starting to look stretched. For the rally to be sustainable, shares should consolidate ahead of the next earnings report in mid-February. An unchecked move higher could lead to sharp volatility around the release and would put pressure on the company to deliver near-perfect results.
It helps that broader market conditions are firmly in risk-on mode, with the S&P 500 notching a fresh record high this week. In that environment, investors are more willing to lean into growth stories like CoreWeave. While the bears raise valid concerns, the current backdrop clearly favors upside if the business can execute effectively.
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