Shares of CoreWeave ( CRWV ) rose sharply on Jan. 26, after Nvidia ( NVDA ) announced a $2 billion investment in the artificial intelligence (AI) infrastructure company.

CRWV believes this deal will help accelerate its creation of “5 gigawatts of AI factories by 2030.” Still, it may not be enough for investors to load up on the stock at current levels.

At its intraday high, CoreWeave stock was seen trading nearly 65% ​​higher than its December low.

Nvidia’s investment in the AI ​​infrastructure company looks positive at first glance, but CEO Jensen Huang’s latest statements warrant caution when buying CRWV stock today.

Speaking to CNBC this morning, Huang said the chipmaker was investing a “small percentage” of what is needed for a 5GW build vital to the fast-growing AI industry.

According to expert estimates, this type of data center capacity may require up to $75 billion in investments.

That means Livingston, New Jersey-based CoreWeave needs to raise billions more to fulfill its “5 GW” promise, some of which may come from debt or equity offerings, increasing the risk of dilution for its existing shareholders.

From a technical perspective, CoreWeave shares, after today’s surge, are at an inflection point.

At the time of writing, they are challenging their 200-day moving average (MA) at the $104 level, a decisive break above which could accelerate short-term bullish momentum.

On the other hand, however, CRWV’s failure to break out may reinforce that its broader downtrend remains intact.

It’s also worth mentioning that CoreWeave is currently trading at a price-to-sales (P/S) ratio of over 10, which seems a bit of a stretch given that the company has yet to turn a profit.

Meanwhile, CRWV also does not pay dividends to incentivize ownership.

Despite the aforementioned concerns, Wall Street analysts continue to believe that AI tailwinds alone will push CRWV stock higher in 2026.

According to Barchart, the consensus rating on CoreWeave remains at “Moderate Buy,” with an average target of around $125 indicating a potential upside of more than 20% from here.