CoreWeave Stock Is Rising. This Wall Street Firm Boosts Its Stake.

Jane Street Group has amassed nearly 20 million shares of CoreWeave common stock. (Courtesy CoreWeave)

CoreWeave stock was rising Thursday after the quantitative trading firm Jane Street Group disclosed a 5.4% stake in the artificial-intelligence infrastructure company.

Jane Street has amassed nearly 20 million shares of CoreWeave common stock as of Aug. 13, according to a filing with the Securities and Exchange Commission. The stake would total more than $1.8 billion as of Wednesday’s close.

CoreWeave shares were up 1.6% to $92.95 in premarket trading following the disclosure.

Jane Street has owned CoreWeave shares as far back as the first quarter, when the popular AI play went public. A SEC filing in May revealed the New York-based firm held about 9.4 million shares at the end of March.

The latest disclosure is a Schedule 13G form, which investors are required to file when they acquire than 5% of a security’s outstanding shares. The disclosure also means Jane Street is a passive investor that doesn’t intend to influence CoreWeave’s decision making. Activist investors are required to submit a different filing.

CoreWeave declined to comment.

The company also got a boost from H.C. Wainwright analyst Kevin Dede, who upgraded the stock to Buy from Neutral and set a $180 price target in a research note Thursday.

CoreWeave stock has plummeted since reaching a record closing high of $183.58 on June 20, but that fall has created a buying opportunity for investors, Dede argued.

“We are not adjusting estimates here, just recognizing the stock’s valuation has sunk deep enough, we believe, to suggest investors could enjoy healthy returns to previous stock levels,” Dede wrote.

Write to Nate Wolf at nate.wolf@barrons.com