CoreWeave's CRWV stock has seen a significant surge after entering the Nasdaq market last week. The AI cloud-focused company’s shares jumped 41% on Tuesday and increased by 11% to $58.60 in early Wednesday trading. Analysts believe the excitement in the market this week is driven by the anticipation of CoreWeave being added to various AI portfolios.

CoreWeave launched its initial public offering (IPO) at $40 per share in March, initially planning to sell shares within the $47 to $55 range. However, concerns over AI spending and CoreWeave's business strategy led them to scale back the offering. Despite this, the company was able to raise $1.5 billion with a valuation of $23 billion, falling short of their initial goal of $4 billion at a $35 billion valuation.

The company, established in 2017 by Michael Intrator, Brian Venturo, and Brannin McBee, transitioned from a crypto mining business to providing AI hardware and data centers. CoreWeave secured significant investments from Nvidia and Microsoft, allowing it to acquire $10 billion worth of GPUs. It competes with prominent cloud providers like Microsoft and Amazon.

Although CoreWeave has demonstrated strong financial performance with sales reaching $1.9 billion last year, investors remain wary of the company's substantial debt accumulation to purchase AI chips. CoreWeave has raised a total of $14.9 billion through both debt and equity to support its operations.