CoreWeave (NASDAQ: CRWV) shares rallied on January 26th after Nvidia (NASDAQ: NVDA) announced a $2 billion investment in an artificial intelligence (AI) infrastructure firm.
On the surface, it’s a powerful endorsement for CRWV’s ambitious plan to build “5 gigawatts” of data centers – a staggering amount of capacity vital for the exploding AI industry.
However, NVDA chief executive Jensen Huang offered a subtle yet critical caveat during a CNBC interview today that warrants rethinking an investment in CoreWeave stock at current levels.
Huang’s comment warrants caution in buying CRWV stock
On Monday, Huang told CNBC that Nvidia’s investment represents a rather “small percentage” of the total funding CoreWeave needs, suggesting the path to 5GW is far more complex and “costly” than the headlines imply.
His remarks underscore the sheer scale of CRWV’s undertaking – with industry estimates putting the total cost of setting up 5 GW of artificial intelligence data centers at $50 billion to $75 billion.
This means CoreWeave still needs to raise tens of billions of dollars, a significant chunk of which may come from debt or equity offerings, signaling financial and dilution risk for existing investors.
In a way, Huang’s comment makes “upward momentum” in CRWV stock a little less attractive to chase.
Why CoreWeave shares remain unattractive to own in 2026
Huang’s comment is also a stark reminder that CoreWeave, despite its massive potential and recent valuation boosts, remains a pre-production entity on the scale of its 5 GW dream.
While they operate existing smaller-scale cloud infrastructure, achieving 5 GW means constructing facilities roughly equivalent to five large nuclear power plants in terms of energy consumption.
The “significant” funding yet to be raised underscores that this journey will be protracted, capital-intensive, and fraught with conventional complexities of large-scale infrastructure development – permitting delays, supply chain issues, and technological integration.
For CoreWeave shares, it isn’t a quick flip; it’s a marathon of unprecedented financial and logistical demands.
Technicals signal a near-term pullback in CoreWeave Inc
Huang’s statement perfectly encapsulates the “Jensen Paradox” – an external optimism about AI’s future paired with an internal, rigorous pragmatism about the costs and complexities involved.
By subtly highlighting the monumental capital still required, Huang manages market exuberance.
He wants CoreWeave to succeed as a major buyer of Nvidia’s chips, but he’s also ensuring that the giant’s reputation isn’t tied to a potentially overhyped or even unrealistic timeline for a vision that demands decades of relentless execution and tens of billions of dollars.
What’s also worth mentioning is that CRWV shares are failing to decisively break above their 100-day moving average at the $102 level today – signaling the bullish momentum is near exhaustion.
Plus, CoreWeave is currently trading at north of 10x sales, which appears stretched for a company that hasn’t even turned a profit yet.
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