Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today.
American banking giant JPMorgan has raised its outlook on cloud computing firm CoreWeave (NASDAQ: CRWV), ahead of the company's quarterly earnings release on Tuesday.
CoreWeave has fallen by roughly a third since its June peak. Strong earnings from fellow AI cloud company Nebius could soothe the pain.
As AI applications scale rapidly and quickly become the norm, powering and deploying this next-gen technology requires serious infrastructure. A new class of companies is emerging as critical enablers of the AI revolution, from purpose-built GPU cloud platforms to energy-efficient data centers and sovereign AI capabilities.
CoreWeave heads into Q2 earnings with strong demand trends but competition, high capex, and valuation weighing on sentiment.
CoreWeave is expected to report $1.08 billion in Q2 revenue, surpassing its first-ever billion-dollar quarter milestone. The company holds a $25.9 billion backlog, with $11.9 billion tied to a long-term contract with OpenAI. Core Scientific adds 840 MW of contracted capacity, contributing to early revenue and margin stability without equivalent near-term CapEx.
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.