Shares of AI cloud computing company CoreWeave (CRWV) surged on May 16 after chip giant Nvidia revealed a large ownership stake, signaling growing corporate and institutional interest in the newly public company. CRWV stock climbed as much as 26.3% in New York trading, pushing its market capitalization above $38 billion. Trading volumes were more than double the daily average, according to Yahoo Finance data. The stock was last seen trading around $81, up 23% on the day. CoreWeave’s rally was sparked by regulatory filings from Nvidia showing that the company owned $900 million of CRWV stock at the end of the first quarter. The value of the holdings has more than doubled since March 31, assuming Nvidia hasn’t sold any shares since then. As CNBC reported, Nvidia’s ownership stake at the time of CoreWeave’s initial public offering (IPO) was 17.9 million shares. CoreWeave’s stock has gained more than 100% from its IPO price of $40 in late March, vastly outperforming the Nasdaq Composite Index and broader US stock market over that period. The Nvidia revelations overshadowed CoreWeave’s fiscal first-quarter earnings report, which showed a 420% surge in revenue but also a 487% spike in operating expenses. The company’s net loss widened by 143% compared to a year earlier. Its stock declined shortly after the financials were released on May 14. CoreWeave’s complicated history with crypto started in 2017 as an Ethereum mining operation called Atlantic Crypto and transitioned to cloud computing services in 2019. The company leveraged its GPU infrastructure to ride the AI boom and secure a massive IPO launch. CoreWeave also attracted major investors like OpenAI, with whom it reached an $11.9 billion deal for AI infrastructure. Operating in the expanding cloud computing industry, CoreWeave is poised to benefit from the forecasted $2 trillion market by 2030 as AI applications gain mainstream adoption, as per Goldman Sachs estimates. Another estimate by Fortune Business Insights suggests that the global cloud AI market alone could approach $600 billion by 2032, with a compound annual growth rate of 28.5%. This growth trajectory indicates a promising future for CoreWeave and its position in the AI cloud computing sector.