Nvidia Stock Rises. CoreWeave Results Are Good News After All.

Nvidia CEO Jensen Huang was in Saudi Arabia this week. (AFP via Getty Images)

The company carries significant debt on its balance sheet, and planned capital expenditures of up to $23 billion were weighing on shares in early trading. CoreWeave fell as low as $61.33 on Thursday, down 9.1% from Wednesday’s closing price.

At first, Nvidia descended along with it, but the stock rebounded later in the session as investors digested the results. After a seemingly overblown reaction to CoreWeave’s guidance, the outlook appeared to be a blessing in disguise for the chip maker.

Melius Research analyst Ben Reitzes asserted the capex could be “good news for demand for new Blackwell-based systems from Nvidia” into 2026, particularly for the company’s GB200 and GB300 processors.

“We believe that CoreWeave will continue to receive the leading Nvidia systems early—and in large quantities,” Reitzes said.

Shares of Nvidia rose 0.6% to $136.18. CoreWeave stock edged even higher, gaining 1.2%. The benchmark S&P 500 and tech-heavy Nasdaq Composite were up 0.5% and 0.3%, respectively.

CoreWeave generates revenue by renting out remote servers that use Nvidia chips. Nvidia purchased $250 million worth of the company’s shares at its initial public offering in March, having already held a 6% stake in CoreWeave ahead of its listing.

Another possible explanation for Nvidia’s decline in early trading was that the price climbed too high in the previous session.

Nvidia was one of the top performers in the S&P 500 on Wednesday. Shares spiked after CEO Jensen Huang announced a deal with Saudi Arabia’s state-backed AI firm Humain, and Nvidia ended the session up 4.2%.

The stock had an relative strength index, or RSI, of 73.76 on Thursday. The metric measures the magnitude of recent price changes. An RSI of around 70 or higher indicates a stock is overbought, and reaching that level could signal that a pullback is on the horizon.

CoreWeave’s latest report didn’t raise particular red flags about demand. Management noted on a call with analysts that heightened macroeconomic uncertainty hadn’t influenced consumer behavior.

However, Nvidia’s deal with Humain may herald a new source of spending on AI chips in the coming years. (Fellow chip maker Advanced Micro Devices

AMD -2.32% separately announced its own partnership with the company.)

Saudi Arabia and other countries aim to build their own data centers, which could benefit manufacturers of AI-enabling hardware. CFRA analyst Angelo Zino said Wednesday that he expected Nvidia’s “content growth story in data centers” to extend at least through 2027, supported by its robust product pipeline.

“While quarterly variability is a risk, we view any pullbacks as enhanced buying opportunities given the better policy backdrop/customer visibility,” Zino added.