AI Compute Crunch Pays Off for CoreWeave As Capacity Fetches Higher Prices

CoreWeave Inc. (NASDAQ:CRWV) said Thursday it established an at-the-market stock offering program that could allow the artificial intelligence cloud company to sell up to 35 million Class A shares. The financing move comes as CoreWeave reports stronger pricing for new compute capacity and billions of dollars in additional customer commitments. Under the ATM program, CoreWeave may sell shares from time to time through a group of financial institutions. The company said the program is designed to provide financing flexibility and help move its enterprise credit profile toward investment grade. CoreWeave is not required to sell any shares. The timing and size of any sales will depend on market conditions, capital structure goals and other restrictions. AI Compute Capacity Commands Higher Prices Separately, CoreWeave said Thursday that it has continued to sign contracts for new compute capacity at higher prices since June 30. During the third quarter, the company signed short-term customer contracts lasting about three to six months. Pricing was approximately $40 million per megawatt, based on annualized revenue divided by the power needed to service the related computing clusters. The higher pricing provides another indication of tight demand for AI computing infrastructure. CoreWeave also highlighted the rapid expansion of its contracted business. The company added more than $25 billion in net new customer commitments early in the third quarter. Those commitments were not included in its revenue backlog as of June 30. Contracted Power Climbs To 4.2 Gigawatts CoreWeave’s total contracted power reached about 4.2 gigawatts as of Aug. 11, up from roughly 3.7 gigawatts on June 30. The announcements highlight two sides of CoreWeave’s aggressive AI infrastructure expansion. Demand and pricing for compute capacity remain strong, while the company is also seeking additional financing flexibility as it builds out the power and infrastructure needed to support that growth. See More: Top Value Stocks Stock Performance And Technical Analysis CoreWeave stock fell more than 2% in Thursday’s premarket session, bucking a broader rally in technology stocks. Nasdaq futures climbed 1.65%, while S&P 500 futures gained 1.25%. Traders appeared to focus on the stock’s technical setup after its strong run earlier this year. The stock remains below several key moving averages. That has kept pressure on rebounds as CoreWeave works through its post-July breakdown. CoreWeave remains in a mixed technical position. At $81.46, the stock is 6.2% below its 20-day simple moving average of $87.18. It is also 4.3% below its 50-day SMA of $85.44. CoreWeave trades 15.2% below its 100-day SMA of $96.37 and 11.1% below its 200-day SMA of $92.02. Those levels point to continued pressure on the longer-term trend. However, the 20-day SMA remains above the 50-day SMA, providing a modest near-term bullish signal. The stock’s July death cross, when the 50-day SMA fell below the 200-day SMA, remains intact. The relative strength index stands at 45.73. That signals neutral momentum, with the stock neither overbought nor oversold. Key resistance sits near $94.50. CoreWeave would need to reclaim that area to strengthen its recovery. Support stands near $79. A break below that level could expose the stock to further downside. Analyst Outlook CoreWeave carries a Buy consensus rating with an average price forecast of $145.44. Recent analyst actions include Truist Securities raising its price forecast to $165 while maintaining a Buy rating on Aug. 24. Goldman Sachs raised its forecast to $139 and maintained a Neutral rating on Aug. 21. Citigroup raised its forecast to $159 while maintaining a Buy rating on Aug. 14. Benzinga Edge Rankings The Benzinga Edge scorecard highlights CoreWeave’s weak momentum relative to the broader market. CoreWeave has a Momentum score of 8.96. The weak reading aligns with the stock trading below several major moving averages. The technical setup remains under pressure. A sustained move above key moving averages could improve the longer-term trend. Top ETF Exposure CoreWeave is held by several exchange-traded funds, including the iShares Future AI & Tech ETF (NYSE:ARTY), with a 4.24% weighting. The Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (BATS:GSEW) has a 0.23% weighting, while the CoinShares Bitcoin Mining and Digital Power ETF (NASDAQ:WGMI) has a 4.45% weighting. ETF inflows and outflows can create additional buying or selling pressure on stocks held by those funds. Price Action CRWV Stock Price Activity: CoreWeave shares fell 2.22% to $81.50 in Thursday’s premarket trading, according to Benzinga Pro data. Photo via Shutterstock Read Also: Fast-Tracking AI Infrastructure: CoreWeave Partners Deliver Data Center Power Early