Why CoreWeave Stock Skyrocketed Last Week

Key Points

• CoreWeave stock saw big gains in connection with news that its buyout of Core Scientific could be blocked.

• CoreWeave has entered into terms to buy Core Scientific in a $9 billion all-stock deal.

• Shareholders of both companies have some reservations about the acquisition deal.

• 10 stocks we like better than CoreWeave ›

CoreWeave (NASDAQ: CRWV) stock recorded huge gains over the past week of trading. The artificial intelligence (AI) company's share price soared 24.4% higher across the stretch.

CoreWeave's big stock rally arrived in conjunction with the news that one of the company's big strategic initiatives could face major hurdles. According to reports, CoreWeave's $9 billion deal to buy Core Scientific could wind up being blocked -- but many investors actually seem to be happy with the news.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

What's next for CoreWeave?

CoreWeave announced on July 7 that it had entered into an agreement to purchase Core Scientific at a $9 billion valuation. Even before the deal was officially announced, rumblings of a potential acquisition were met with negative reactions from CoreWeave shareholders. Some big Core Scientific shareholders are also apparently unhappy with the deal.

While terms for the potential buyout have already been agreed to, Core Scientific's shareholders still need to approve the acquisition. Along with bullish valuation momentum for the broader AI space, hopes that the buyout could be scuttled helped power big gains for CoreWeave stock this week.

What's next for CoreWeave?

If CoreWeave were to complete its acquisition of Core Scientific, it would help the company reduce roughly $10 billion in lease expenses. On the other hand, the all-stock deal would result in a substantial amount of share value dilution for current stockholders -- and some investors and analysts are wondering whether the buyout is in the company's best interest.

While news about the potential Core Scientific acquisition will probably continue to play a significant role in CoreWeave stock's near-term performance outlook, the AI cloud computing company has strengths that could allow it to deliver strong returns regardless of how the buyout situation resolves.

Should you invest $1,000 in CoreWeave right now?

Before you buy stock in CoreWeave, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,863!*

Now, it’s worth noting Stock Advisor’s total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 4, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.