Why CoreWeave Inc. (CRWV) Went Up On Tuesday?

We recently published a list of 10 Firms Outperform Broader Market on Tuesday. In this article, we are going to take a look at where CoreWeave Inc. (NASDAQ:CRWV) stands against other firms that outperform broader market on Tuesday.

The stock market finished mixed on Tuesday, with the Dow Jones the sole loser with a marginal 0.03-percent dip, as investors awaited clarity on President Donald Trump’s new tariff rollout.

The tech-heavy Nasdaq ended 0.87 percent higher, while the S&P 500 grew 0.38 percent.

Meanwhile, 10 individual stocks outperformed the bellwether indices, finishing the day in the green amid a flurry of fresh corporate developments that boosted investor appetite.

In this article, we named Tuesday’s top performers and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume.

CoreWeave Inc. (NASDAQ:CRWV)

Newly listed CoreWeave Inc. saw its share prices surge by 41.77 percent on Tuesday, its third day as a public company, as investors resorted to bargain-hunting following Monday’s drop.

CRWV listed 37.5 million shares at $40 apiece on the US stock exchange after initially targeting a sale of 49 million shares at between $47 and $55 apiece.

CRWV was one of the most anticipated initial public offerings this year, having been backed by Nvidia Corp.

Further adding to the positive sentiment was CRWV’s edge with OpenAI, with the latter securing $40 billion in funding from SoftBank to bolster AI.

It can be learned that CRWV reached an $11.9-billion deal with OpenAI in March. According to analysts, the deal could reduce CRWV’s reliance on Microsoft which earlier lessened its commitment to the company for missing deadlines and materials delivery issues needed to scale its artificial intelligence models.

Overall, CRWV ranks 2nd on our list of firms that outperform broader market on Tuesday. While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CRWV but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.