CoreWeave up 16% after OpenAI Astra, $22.4B deal

CoreWeave’s stock jumped 16% on Tuesday after OpenAI launched its Astra model and the company emphasized a $22.4 billion agreement to supply computing power. The gain followed stronger-than-expected second-quarter results and an upward revision to full-year 2026 revenue guidance.

CoreWeave reported second-quarter revenue of $2.58 billion, up 112% year over year. The company reported a revenue backlog of about $104 billion and said management added more than $25 billion in new customer commitments during the early weeks of the third quarter. Management raised full-year 2026 revenue guidance to a range of $12.4 billion to $13.2 billion.

Under the $22.4 billion arrangement with OpenAI, CoreWeave will provide computing power to support the Astra model. The company’s offerings under the contracts include access to NVIDIA accelerators and related networking, storage and orchestration software. The agreements are long-dated, take-or-pay commitments that guarantee customers access to capacity rather than selling short-term GPU time.

Only 36% of CoreWeave’s contracted power is currently active, leaving unused contracted capacity that the company can bring online as infrastructure is energized. The reported revenue backlog of roughly $104 billion is about 10 times the company’s latest annualized revenue.

Brokerage responses after the quarter included Truist Securities raising its price target on CoreWeave to $165 from $155. Oppenheimer maintained an Outperform rating with a $150 target.

Investor activity during the second quarter included Appaloosa Management adding CoreWeave to its portfolio alongside Space Exploration Technologies. Appaloosa’s broader holdings include Amazon, Micron Technology, Taiwan Semiconductor Manufacturing and Alphabet.

CoreWeave projects annual recurring revenue will reach about $250 million by year-end and forecasts 2027 ARR between $18.5 billion and $19.5 billion.