{"id":21944,"date":"2026-01-27T11:50:11","date_gmt":"2026-01-27T11:50:11","guid":{"rendered":"https:\/\/businessprofittoday.com\/index.php\/2026\/01\/27\/nvidias-coreweave-bet-seems-bullish-but-jensen-huangs-comment-warrants-caution\/"},"modified":"2026-01-27T11:50:11","modified_gmt":"2026-01-27T11:50:11","slug":"nvidias-coreweave-bet-seems-bullish-but-jensen-huangs-comment-warrants-caution","status":"publish","type":"post","link":"https:\/\/businessprofittoday.com\/index.php\/2026\/01\/27\/nvidias-coreweave-bet-seems-bullish-but-jensen-huangs-comment-warrants-caution\/","title":{"rendered":"Nvidia\u2019s CoreWeave bet seems bullish, but Jensen Huang\u2019s comment warrants caution"},"content":{"rendered":"
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CoreWeave (NASDAQ: CRWV) shares rallied on January 26th after Nvidia (NASDAQ: NVDA) announced a $2 billion investment<\/a> in an artificial intelligence (AI) infrastructure firm.<\/p>\n

On the surface, it\u2019s a powerful endorsement for CRWV\u2019s ambitious plan to build \u201c5 gigawatts\u201d of data centers \u2013 a staggering amount of capacity vital for the exploding AI industry.<\/p>\n

However, NVDA chief executive Jensen Huang offered a subtle yet critical caveat during a CNBC<\/em> interview today that warrants rethinking an investment in CoreWeave stock at current levels.<\/p>\n

Huang\u2019s comment warrants caution in buying CRWV stock<\/h2>\n

On Monday, Huang told CNBC<\/a> that Nvidia\u2019s investment represents a rather \u201csmall percentage\u201d of the total funding CoreWeave needs, suggesting the path to 5GW is far more complex and \u201ccostly\u201d than the headlines imply.<\/p>\n

His remarks underscore the sheer scale of CRWV\u2019s undertaking \u2013 with industry estimates putting the total cost of setting up 5 GW of artificial intelligence data centers at $50 billion to $75 billion.<\/p>\n

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.<\/p>\n

In a way, Huang\u2019s comment makes \u201cupward momentum\u201d in CRWV stock a little less attractive to chase.<\/p>\n

Why CoreWeave shares remain unattractive to own in 2026<\/h2>\n

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.<\/p>\n

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.<\/p>\n

The \u201csignificant\u201d funding yet to be raised underscores that this journey will be protracted, capital-intensive, and fraught with conventional complexities of large-scale infrastructure development \u2013 permitting delays, supply chain issues, and technological integration.<\/p>\n

For CoreWeave shares, it isn\u2019t a quick flip; it\u2019s a marathon of unprecedented financial and logistical demands.<\/p>\n

Technicals signal a near-term pullback in CoreWeave Inc<\/h2>\n

Huang\u2019s statement perfectly encapsulates the \u201cJensen Paradox\u201d \u2013 an external optimism about AI’s future paired with an internal, rigorous pragmatism about the costs and complexities involved.<\/p>\n

By subtly highlighting the monumental capital still required, Huang manages market exuberance.<\/p>\n

He wants CoreWeave to succeed as a major buyer of Nvidia\u2019s chips, but he\u2019s also ensuring that the giant\u2019s reputation isn\u2019t tied to a potentially overhyped or even unrealistic timeline for a vision that demands decades of relentless execution and tens of billions of dollars.<\/p>\n

What\u2019s also worth mentioning is that CRWV shares<\/a> are failing to decisively break above their 100-day moving average at the $102 level today \u2013 signaling the bullish momentum is near exhaustion.<\/p>\n

Plus, CoreWeave is currently trading at north of 10x sales, which appears stretched for a company that hasn\u2019t even turned a profit yet.  <\/p>\n

The post Nvidia’s CoreWeave bet seems bullish, but Jensen Huang’s comment warrants caution<\/a> appeared first on Invezz<\/a><\/p>\n

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