CoreWeave struggling to keep up with demand for Nvidia chips, CEO says
San Francisco, Calif. — CoreWeave's chief executive, Michael Intrator, revealed on Yahoo Finance's Goldman Sachs Communacopia & Tech Conference that the company is facing difficulties in meeting the ever-growing demand for Nvidia's chips. Intrator emphasized that each GPU could be allocated to multiple clients, making it a unique moment for the company.
Nvidia not only serves as the primary supplier of Advanced GPUs for CoreWeave's AI data centers but also holds an 11.5% equity stake. Nvidia has forecasted a 70% revenue growth for fiscal year 2028, surpassing analyst predictions of a 45% growth. CoreWeave reported a 112% year-over-year surge in sales during the second quarter, with adjusted operating profits more than doubling to $1.5 billion.
The company raised its full-year 2026 revenue guidance to a range of $12.4 billion to $13.2 billion. The robust AI demand, higher pricing power, and growing software/token business have led to an increase in margins. CoreWeave's stock rose approximately 40% year to date, demonstrating that the company's confidence in execution is bolstered by improved profitability.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
