IPO Mania: A Closer Look at Circle and CoreWeave

IPO activity post-pandemic has fluctuated significantly, primarily driven by economic uncertainty, rising interest rates, and inflation, all of which have impacted investor sentiment.

But the tide has shifted positively over the past year, with several notable IPOs hitting the market, including CoreWeave CRWV and Circle Internet Group CRCL. Both stocks have seen big runs in June.

In short, CRWV provides exposure to the AI frenzy, whereas CRCL is a play on the mainstreaming of digital dollars and the evolving stablecoin regulatory landscape.

Let’s take a closer glance at each.

CoreWeave & NVIDIA

Given its backing by AI-favorite NVIDIA NVDA, the IPO reflected one of the most exciting we’ve seen in years. An SEC filing in late May 2025 revealed NVIDIA has a $900 million stake, reflecting one of its largest investors.

It’s also important to know that NVIDIA supplies CoreWeave with most of its high-performance GPUs that power CRWV’s AI infrastructure. Some time back, investors raised flags concerning the massive amount of sales NVIDIA generated from CRWV, but that concern has since evaporated.  

The company’s latest set of quarterly results were driven by accelerating demand for its AI offerings, with sales up a staggering 420% year-over-year. Revenue backlog totaled a strong $25.9 billion, with CRWV also securing more lucrative deals with enterprises.

Up 270% since its IPO, the stock remains a great play on the AI frenzy, which appears to still be in the early innings.

Circle Shares Soar

Circle is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce, and financial applications worldwide. It’s the issuer of USDC, the world’s second-largest dollar-pegged stablecoin, widely used across exchanges, DeFi platforms, and institutional trading venues.

But what does that even mean? CEO Jeremy Allaire explains simply –

‘If you could take what we think of as money, make it digital and available on the internet, then that would dramatically change the way we use money and open up opportunity around the world. That’s the idea behind Circle.’

Below is an image displaying the company’s platform in greater detail.

Since their debut on June 5^th, shares have went on a massive run. It’s worth noting that Cathie Wood’s ARK had a big win on the stock, purchasing roughly 4.5 million shares on its first day of trading.

The stock overall reflects a great play on the evolving stablecoin regulatory landscape, which is also just seemingly beginning as we increasingly wade into the digital age.

Bottom Line

IPO news has dominated headlines this week, a nice breather from tariffs news that have consistently impacted sentiment.

Circle CRCL shares have been blistering hot since their debut this month, with CoreWeave CRWV shares also seeing similar price action since its debut. The price action here post-IPO actually bodes well for the broader market overall, which reflects 'hungry' investor sentiment. 

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This article originally published on Zacks Investment Research (zacks.com).

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