CRWV's federal push boosts momentum as soaring Q3 revenues and early NASA adoption signal wider public-sector potential.
CoreWeave, Inc. remains a Strong Buy despite a 40% stock decline driven by supply chain delays in data center infrastructure. CRWV Q3 revenues surged 134% to $1.36B, but margins compressed due to rising overhead and lack of operating leverage. Supply chain bottlenecks, particularly in power-shell delivery, have delayed CRWV revenue and CapEx, leading to lowered full-year guidance.
I am initiating coverage with a buy rating, driven by extraordinary revenue growth and a unique role in the AI GPU ecosystem. CoreWeave posted 134% YoY revenue growth and a 61% adjusted EBITDA margin, but faces margin compression and high leverage with $16 billion net debt. The company's $55.6 billion revenue backlog and supply-constrained AI market support continued high growth, though execution risks and debt remain material.