CoreWeave stocks surge as Microsoft secures spending plans
- CoreWeave shares surged after Microsoft reported strong cloud sales and reaffirmed its spending plans.
- Despite President Trump's tariff announcements, Microsoft and Meta are maintaining high capital expenditure forecasts.
- The outlook for CoreWeave remains optimistic based on the technological demands from major clients.
In the United States, shares of CoreWeave experienced a significant surge, soaring as much as 17%, following positive earnings reports from its largest client, Microsoft. This event occurred on Thursday, May 01, 2025, just days before CoreWeave was set to release its first earnings report as a public entity on May 14. Microsoft's recent earnings call indicated a 33% year-over-year increase in revenue from its Azure cloud services, surpassing analysts' expectations. Microsoft CEO Satya Nadella communicated confidence in their spending strategies, despite ongoing economic challenges presented by President Donald Trump's tariff announcements. CoreWeave, which recently debuted on the public market, has garnered attention from investors as it positions itself to benefit from increasing capital expenditures among major tech companies. In addition to Microsoft, Meta, another key client, raised its forecast for capital expenditures in 2025. The growing demand for artificial intelligence infrastructure is contributing to optimism surrounding CoreWeave’s market prospects, with both tech giants planning substantial investments in the near future. Before Microsoft’s earnings report, there had been concerns within the industry that Trump's tariffs would prompt companies to scale back their capital expenditures. However, recent statements from Microsoft executives suggested that while adjustments in project pacing are common, there is still commitment to significant investment in infrastructure to support their growth in cloud computing. Microsoft’s finance chief reiterated expectations for continued growth in capital expenditures for the 2026 fiscal year, although at a slower rate than previously observed. The transition from CoreWeave's origins in cryptocurrency mining to a significant player in the cloud infrastructure market further underscores the shifting landscape of technology investments. As part of its strategy, CoreWeave aims to fulfill contracts to supply Nvidia graphics processing units (GPUs) required for AI applications, especially given the rise of tools like ChatGPT, which depend heavily on Microsoft’s services for operational capacity. As a result of these developments, CoreWeave is poised to maintain a competitive edge amidst fluctuating market conditions and to benefit from the ongoing digital transformation in various sectors.