NBIS edges out CRWV as the better AI cloud stock pick, with expanding global reach, platform upgrades, and strategic NVIDIA ties despite near-term EBITDA losses.
Jim Cramer breaks down why he's keeping an eye on shares of CoreWeave.
CoreWeave Inc (NASDAQ:CRWV) is up 4.2% at $107.02 before the bell, extending its impressive rally since going public in late March.
The artificial intelligence (AI) boom has driven stock market gains over the past couple of years, but the momentum may be far from over. Not only do analysts predict an AI market of more than $2 trillion by the early 2030s, but current activity in the space supports that.
CoreWeave shares popped more than 18% after the renter of artificial intelligence data centers announced a $2 billion debt offering.
CoreWeave's revenue backlog stands at $29.9 billion, with 20–25% expected to convert annually over 4–5 years. FY2026 revenue is projected between $6.0B and $7.48B, based on backlog conversion and contract recognition timing. EBITDA margins are expected to normalize at 30–32%, yielding $1.79B to $2.39B in FY2026 EBITDA.
CoreWeave, Inc. CRWV recently reported first-quarter 2025 results, wherein revenues of $981.6 million beat the Zacks Consensus Estimate by 15.2% and jumped 420% year over year.
CRWV stock has been dominating peers and sub-industry since going public in March.
CoreWeave has seen impressive growth in the first quarter of 2025, comforting after a tough public offering. While growth is delivered upon, the company has returned to post substantial operating losses. Capital spending is set to boom this year, as I continue to have concerns on the strength of the business model.
CoreWeave is a bold, binary bet on AI infrastructure: hold at a small weighting to balance huge upside potential against substantial execution and financial risks. Watch capital deployment closely. Disciplined execution on massive upfront investments will determine whether CoreWeave becomes a giant or stumbles under its debt. Maintain cash optionality alongside CoreWeave exposure; patience and strategic diversification are key to navigating inevitable volatility in this high-reward AI growth play.
CoreWeave (NASDAQ:CRWV) shares moved higher after the AI cloud-computing startup reported significant revenue growth for the first quarter and raised its full-year outlook. First quarter revenue surged 420% year-over-year to $981.6 million, ahead of analyst expectations of $857 million.
CRWV's performance gains from increasing demand for AI-cloud infrastructure. Management announces increases in capex due to higher investment in the platform.