AI Spending Surge: CoreWeave vs. Applied Digital Growth Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Should l Buy CRWV?
Source: Fool
- CoreWeave Revenue Surge: In 2025, CoreWeave's revenue skyrocketed by 168% to over $5.1 billion, reflecting strong demand in the AI cloud infrastructure market, with expectations for continued high growth in the coming years.
- Significant Customer Growth: CoreWeave added nearly twice as many long-term customers in Q4 compared to its best previous quarters, with the number of clients spending over $1 million annually increasing by nearly 150%, indicating rapid market penetration and customer base expansion.
- Applied Digital Lease Revenue Outlook: The 400-megawatt data center under development by Applied Digital is expected to generate approximately $11 billion in lease revenue over 15 years, with the first 100 megawatts already operational, showcasing its long-term revenue potential.
- Market Competition and Risks: While CoreWeave anticipates capital expenditures of $30 billion to $35 billion in 2026, potentially leading to short-term margin compression, its robust revenue growth and strong backlog make it more attractive in the coming years.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 74.810
Low
68.00
Averages
123.23
High
180.00
Current: 74.810
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Post-IPO Performance: After completing its IPO last year, CoreWeave's stock surged over 300% within months, reflecting strong market interest and potential in the artificial intelligence sector.
- Revenue Growth: Despite recent stock declines, CoreWeave generated $5 billion in revenue over the past year, indicating robust demand for its AI workload capacity, with quarterly revenue growth remaining in triple digits.
- Debt Concerns: Investors are worried about CoreWeave's high leverage, particularly as the AI stock market becomes more cautious, which could impact its future financing capabilities and operational stability.
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See More
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- Market Volatility: The S&P 500 struggled to maintain gains at the start of the holiday-shortened trading week, initially rising after President Trump's comments on the Iran war but subsequently falling, with the tech-heavy Nasdaq leading the decline, indicating market uncertainty.
- Oil Price Impact: U.S. West Texas Intermediate crude oil prices rose over 3% to above $100 per barrel; however, despite this typically leading to higher bond yields, the 10-year Treasury yield fell about 10 basis points to 4.32%, reflecting a cautious market response to short-term energy cost spikes.
- TJX Dividend and Buyback: TJX Companies announced a 14% increase in its quarterly dividend to $0.48 per share and plans to repurchase approximately $2.5 billion to $2.75 billion of stock in the current fiscal year, signaling confidence in future earnings and cash flow growth, despite a modest dividend yield of 1.2%.
- Strong Long-term Performance: TJX shares have risen 298% over the past decade, with a total return of 358% when including reinvested dividends, demonstrating the company's consistent execution and off-price model's effectiveness in attracting value-seeking shoppers.
See More
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- Stock Decline: Despite Nvidia's strong quarterly performance with a 73% year-over-year revenue increase and a 79% surge in net income, its stock has fallen over 11%, indicating market concerns about future growth.
- Guidance Outlook: CEO Jensen Huang anticipates $1 trillion in sales from the current Blackwell platform and the upcoming Vera Rubin platform by 2027, yet the market's muted response has led to its P/E ratio aligning with the S&P 500 for the first time in over a decade.
- Capital Expenditure Concerns: While Nvidia itself is not a major capital spender, it relies on hyperscalers' $700 billion investment in AI infrastructure to sell its chips, raising investor worries about the sustainability of returns from such intense spending.
- China Market Reopening: Huang announced plans to restart chip sales to businesses in China, a segment that has been dormant for several quarters due to geopolitical issues, but historically contributed significantly to revenue, potentially providing a new growth avenue for the company.
See More
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Potential Benefits of AI: Artificial intelligence is expected to transform economies, enhance productivity, and contribute to advancements in healthcare and environmental solutions.
Concerns Surrounding AI: There are significant fears regarding AI's impact on jobs, privacy, profit margins, and the integrity of information.
Contrasting Perspectives: The narrative around AI fluctuates between optimism about its capabilities and a sense of impending doom regarding its consequences.
Rapid Shifts in Sentiment: Public perception of AI can change dramatically within short timeframes, reflecting both hope and anxiety.
See More
CoreWeave (CRWV.US) Director Plans to Sell $4.15 Million in Common Stock, According to Form 144
Share Sale Announcement: Omnadora Capital LLC plans to sell 50,000 shares of its common stock on March 25, with an estimated market value of approximately $4.15 million.
Reduction in Shareholding: Omnadora Capital LLC has reduced its shareholding in Core Weave (CRWV.US) by 721.8K shares since December 31, 2025, with a total value of around $61.58 million.
See More
CoreWeave: The Most Misunderstood AI Stock?
- Post-IPO Performance: CoreWeave's stock surged over 300% within months after its IPO, reflecting strong investor confidence in its pivotal role in the AI sector, although it has since slid about 50% from its peak.
- Strong Customer Demand: The company meets AI workload demands by investing heavily in Nvidia GPUs, achieving $5 billion in revenue over the past year, indicating sustained market demand for its services.
- Infrastructure Partnership: CoreWeave signed a deal with Meta Platforms to provide AI infrastructure; despite Meta's own capabilities, its vast needs drive it to seek additional compute power from CoreWeave, further validating the company's market value.
- Leverage Risks: Despite the optimistic business outlook, concerns over CoreWeave's high leverage and the sustainability of AI spending have led to diminished investor confidence in its stock, potentially impacting future capital investment decisions.
See More
CoreWeave's Stock Volatility Post-IPO
- Post-IPO Performance: After completing its IPO last year, CoreWeave's stock surged over 300% within months, reflecting strong market interest and potential in the artificial intelligence sector.
- Revenue Growth: Despite recent stock declines, CoreWeave generated $5 billion in revenue over the past year, indicating robust demand for its AI workload capacity, with quarterly revenue growth remaining in triple digits.
- Debt Concerns: Investors are worried about CoreWeave's high leverage, particularly as the AI stock market becomes more cautious, which could impact its future financing capabilities and operational stability.
- Market Misunderstanding: Although facing questions about the sustainability of AI spending, CoreWeave shows a proactive approach in infrastructure investment, and if the AI market continues to grow, it could lead to explosive revenue growth, potentially making it one of the most misunderstood AI companies of 2026.
See More
