CoreWeave's (NASDAQ: CRWV) stock has been prominent in the news recently – the company's remarkable journey since going public in March 2025 has attracted the attention of investors. Following its IPO at approximately $40 per share, CoreWeave's stock has soared — more than tripling at one point.
Shares of CoreWeave (CRWV 12.31%) are flying higher on Thursday, up 12.4% as of 2:31 p.m. ET. The jump comes as the S&P 500 and Nasdaq Composite were unchanged.
CoreWeave (NASDAQ:CRWV) enjoyed an incredible rally after its IPO.
CoreWeave specializes in GPU-intensive AI cloud infrastructure, offering bare metal servers for superior performance, security, and cost-effectiveness versus general-purpose clouds. A close partnership with NVIDIA and a unique, contract-backed financing model enable rapid expansion, supporting explosive revenue growth and high backlog. Despite GAAP unprofitability, negative free cash flow, and premium valuation, robust multi-year contracts and surging AI demand justify investor optimism for future growth.
CoreWeave's stock (CRWV) is currently extremely oversold and its estimated FY2026 forward P/S ratio is comparable to a mature company like J&J. The company is projected to more than quadruple its revenue in less than five years, which means its forward P/S ratio for next year should be significantly higher. CRWV recently got 'Buy' rating from highly reputable Argus Research with a $200 target price.
CoreWeave (CRWV -3.50%) and Nebius Group (NBIS -0.90%) have witnessed a rapid jump in their share prices this year. Investors have been buying these stocks hand over fist because they are benefiting big time from the growing demand for cloud-based artificial intelligence (AI) infrastructure.
CRWV's Q1 revenues surge 420% on AI demand, but rising debt and heavy capex raise questions about sustainability.
CoreWeave is a leading AI infrastructure play with explosive growth, but faces sustainability questions due to high leverage and capital intensity. The company boasts strong revenue growth and a first-mover advantage, yet customer concentration and heavy debt pose significant risks. Valuation is rich, reflecting investor belief in CoreWeave as the future AI compute backbone, but leaves little margin for error.
The S&P 500 (^GSPC -0.01%) roared higher over the past couple of years, and though many stocks contributed, one particular group is seen as the leader of that movement. I'm talking about the "Magnificent Seven," a group of supercharged tech stocks that dominate in the world's highest-growth industries, from artificial intelligence (AI) and cloud computing to autonomous vehicle technologies.
CRWV bets $6 billion on a new AI data center in Lancaster, PA, expanding its 33-site network as demand for compute power surges.
A historic wave of investment is pouring into artificial intelligence (AI), creating a foundational shift in the technology sector. While the spotlight often lands on mega-cap companies, the real engine room of the AI revolution is the specialized computing infrastructure it requires.
CRWV has had an exciting H1'25 performance, thanks to the recent IPO, the growing demand for its neocloud offerings, and the consequently rich multi-year backlog. The same has been observed in the management's laser focus on delivering growth, through hefty FY2025 capex plans, M&A activities and new investments. Even so, given the likely to be dilutive acquisition and the expensive borrowing costs on its aggressive capex, we may see CRWV report a lumpy bottom-line performance ahead.