CRWV launches Ventures to fuel AI's next frontier, backing startups with funding, compute power and strategic support.
CoreWeave said on Monday it had signed a new order with Nvidia with an initial value of $6.3 billion, which guarantees that Nvidia will purchase any residual cloud capacity not sold to customers.
CoreWeave, Inc.'s launch of an AI-focused venture arm and surging demand for GPU-as-a-Service signal strong future growth potential. CoreWeave trades at a compelling valuation discount (4.8X P/S) versus rivals like Nebius, offering attractive upside for AI/data center investors. The launch of CoreWeave Ventures could be an accelerant for growth in the firm's GPU-as-a-Service segment.
The AI play is benefitting from surging cloud-computing demand. But if it wants to stay successful, the company must create a differentiated product offering, analysts say.
CoreWeave (CRWV) shares gained 4% in morning trading after the artificial intelligence (AI) cloud computing platform announced plans to support new AI efforts.
CoreWeave (Nasdaq: CRWV) shares gained 8% to about $100 in early Tuesday trading after the cloud infrastructure company announced that it has launched a venture fund to invest in artificial intelligence (AI) startups. CoreWeave's newly created CoreWeave Ventures fund will offer company founders a wide variety of capital investment models to help companies scale, offer access to the CoreWeave cloud platform, and provide insights on product and go-to-market strategies shaped by CoreWeave's relationships with hundreds of enterprises and AI-first organizations.
CoreWeave offers strong short-term upside due to rapid AI infrastructure revenue growth and a robust sales backlog, making it a compelling momentum play. Despite impressive revenue growth, CoreWeave faces significant risks from customer concentration, heavy debt, and high interest expenses impacting profitability. The company's valuation could double by 2027 if growth projections are met, but long-term sustainability is uncertain without improved capital structure and diversification.
Shares of the cloud-computing company fall sharply as top executives, including the CEO and its largest shareholder, Magnetar Financial, sell millions in stock following a lockup expiration
CoreWeave stock has moved above the $100 mark after Cantor Fitzgerald initiated coverage with an Overweight rating and a $116 price target, pointing to the trillion-dollar AI infrastructure opportunity. Shares are now up 160% year-to-date.
: CRWV lifts 2025 revenue outlook again as data center expansion, strong demand and new contracts fuel rapid growth.
CoreWeave's revenue growth is explosive, but capex and debt outpace cash generation, raising financing and execution risks. The company has a massive $30B backlog and strong demand from top-tier AI/cloud customers, supporting long-term growth potential. Improving cost of capital and potential for high free cash flow margins could drive significant upside if execution is strong.
CoreWeave, Inc.'s explosive revenue growth is impressive, but heavy capital spending and rising debt raise concerns about the sustainability of its business model. The company's reliance on long-term contracts and a single supplier (Nvidia) makes it vulnerable to technological shifts and market changes. Recent M&A activity, expensive debt issuances, and slowing sequential growth have introduced significant volatility and uncertainty to the stock.