CoreWeave: A Potential Multibagger in AI Data Centers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Source: Fool
- Significant Investment Returns: Nvidia's $2 billion investment in CoreWeave in January has appreciated by 11% so far, underscoring its critical role in AI infrastructure and suggesting further upside potential.
- Expanding Customer Base: CoreWeave has secured commitments from 10 customers, each pledging at least $1 billion for data center capacity, including major players like OpenAI and Anthropic, highlighting strong demand and market positioning in the AI sector.
- Revenue Growth Potential: CoreWeave's revenue backlog stands at an impressive $99.4 billion, growing 284% year-over-year, with an estimated 36% conversion to revenue over the next two years, propelling annualized revenue from $18 billion to $30 billion.
- Optimistic Market Outlook: Goldman Sachs predicts U.S. data center power demand will double from 31GW to 66GW by 2025, and with CoreWeave's contracted power capacity of 3.5GW, the company is well-positioned to significantly increase its market share in the booming AI data center market.
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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: 98.760
Low
68.00
Averages
123.23
High
180.00
Current: 98.760
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.
CoreWeave: A Potential Multibagger in AI Data Centers
- Significant Investment Returns: Nvidia's $2 billion investment in CoreWeave in January has appreciated by 11% so far, underscoring its critical role in AI infrastructure and suggesting further upside potential.
- Expanding Customer Base: CoreWeave has secured commitments from 10 customers, each pledging at least $1 billion for data center capacity, including major players like OpenAI and Anthropic, highlighting strong demand and market positioning in the AI sector.
- Revenue Growth Potential: CoreWeave's revenue backlog stands at an impressive $99.4 billion, growing 284% year-over-year, with an estimated 36% conversion to revenue over the next two years, propelling annualized revenue from $18 billion to $30 billion.
- Optimistic Market Outlook: Goldman Sachs predicts U.S. data center power demand will double from 31GW to 66GW by 2025, and with CoreWeave's contracted power capacity of 3.5GW, the company is well-positioned to significantly increase its market share in the booming AI data center market.
See More
CoreWeave Secures Nvidia Investment and Market Potential
- Investment Scale and Growth Potential: Nvidia invested $2 billion in CoreWeave in January 2023 to help build AI factories, with the stock appreciating 11% post-investment, indicating strong market confidence in its future growth and positioning it as an ideal portfolio addition.
- Customer Base Expansion: CoreWeave has secured contracts with 10 customers, each committing at least $1 billion for data center capacity, including major players like OpenAI and Anthropic, highlighting its strong appeal and demand in the AI infrastructure sector.
- Revenue and Contractual Capacity: CoreWeave's revenue backlog reached $99.4 billion, growing 284% year-over-year, while quarterly revenue surged 112% to $2.1 billion, showcasing its robust performance in the rapidly expanding AI market and future profitability potential.
- Future Development Goals: CoreWeave aims to increase its active data center capacity to 8 GW by the end of the decade, currently at 1 GW with contracted power capacity of 3.5 GW, indicating the feasibility of its expansion strategy and proactive response to future market demands.
See More
CoreWeave: A Potential Multibagger in AI Infrastructure
- Significant Investment Returns: Nvidia's $2 billion investment in CoreWeave in January 2023 has appreciated by 11% to date, highlighting the strong growth potential in the AI infrastructure sector and further solidifying Nvidia's leadership in the AI market.
- Expanding Customer Base: CoreWeave has secured contracts worth at least $1 billion each with 10 customers, including OpenAI and Anthropic, indicating robust demand in the AI data center market and a diversified client portfolio that is expected to drive future revenue growth.
- Robust Revenue Backlog: CoreWeave's revenue backlog stands at an impressive $99.4 billion, growing 284% year-over-year, demonstrating the company's strong competitive position in the rapidly expanding AI market, with expectations for accelerated revenue conversion enhancing overall financial performance.
- Surging Power Demand: Goldman Sachs predicts that U.S. data center power demand will double from 31GW in 2025 to 66GW, with CoreWeave's contracted power capacity increasing to 3.5GW, showcasing its strategic advantage in meeting market demand.
See More
Nvidia Reports 92% Revenue Surge in Data Center Segment
- Data Center Revenue Surge: Nvidia's data center segment reported a 92% year-over-year revenue increase last quarter, indicating an acceleration in AI factory build-outs, which positions the company favorably in the rapidly growing AI workload market and is likely to attract more investor interest.
- Astera Labs Strong Performance: Astera Labs' stock has surged 357% over the past year, with its Scorpio smart fabric switches contributing 15% to total revenue in 2025, demonstrating the company's increasing competitiveness in the high-speed networking hardware market, with potential for further highs in the future.
- CoreWeave Cloud Service Expansion: CoreWeave's revenue more than doubled year-over-year in Q1, reaching nearly $2.1 billion, showcasing its robust capability in providing cloud computing capacity for generative AI workloads, with projections of revenue nearing $40 billion by 2028, indicating significant growth potential.
- Optimistic Growth Outlook for Vertiv: Vertiv's revenue grew 30% year-over-year in Q1, with management forecasting a 34% increase to $13.8 billion for the full year, and with its leadership in power management and cooling systems, it is expected to achieve a 32% annualized earnings growth over the next few years, benefiting from the data center boom.
See More
AI Investment Fuels Growth for Data Center Suppliers
- Significant Revenue Growth: CoreWeave's revenue more than doubled year-over-year in Q1, reaching nearly $2.1 billion, indicating strong demand in generative AI workloads, with projections suggesting revenue could approach $40 billion by 2028, highlighting the company's potential in the rapidly growing cloud infrastructure market.
- Accelerated Market Demand: Nvidia reported a 92% year-over-year growth in its data center segment, reflecting the accelerated build-out of AI factories that drives demand for high-performance chips, further solidifying its leadership position in the industry.
- Product Expansion Strategy: Astera Labs has expanded its product portfolio over the past three years, with the Scorpio smart fabric switches launched in 2024 contributing 15% of total revenue in 2025, and is expected to continue growing at a high double-digit rate in the coming years, enhancing its competitive edge in the market.
- Profitability Enhancement: Vertiv's revenue grew by 30% year-over-year in Q1, with management forecasting a 34% increase for the full year to $13.8 billion, demonstrating strong performance in power management and cooling systems, with potential for higher margins in the future.
See More
CoreWeave and Nvidia Partnership Fuels AI Growth
- Core Advantage: CoreWeave has secured over $99 billion in contracts through its partnership with Nvidia, becoming the first cloud provider to integrate Nvidia's Vera Rubin NVL72 platform, thereby gaining a crucial competitive edge in a crowded market.
- Financial Performance Analysis: Despite CoreWeave's revenue reaching nearly $2.1 billion in Q1 2026, a 112% year-over-year increase, its $740 million loss and nearly $25 billion debt level have raised investor concerns, potentially putting pressure on its stock price.
- Nokia's Transformation and Growth: Nokia's partnership with Nvidia allows its 5G equipment to embed Nvidia's ARC-Pro processors; although Q1 2026 revenue grew only 2%, its stock has surged approximately 170% over the past year, reflecting market optimism about its future potential.
- Future Outlook for AI Functionality: Collaborations with T-Mobile and French telco Orange will drive the implementation of AI capabilities, with plans to integrate these into upcoming 6G technology, suggesting that despite current financial performance, this strategic partnership could yield long-term growth opportunities for Nokia.
See More
CoreWeave: A Potential Multibagger in AI Data Centers
- Significant Investment Returns: Nvidia's $2 billion investment in CoreWeave in January has appreciated by 11% so far, underscoring its critical role in AI infrastructure and suggesting further upside potential.
- Expanding Customer Base: CoreWeave has secured commitments from 10 customers, each pledging at least $1 billion for data center capacity, including major players like OpenAI and Anthropic, highlighting strong demand and market positioning in the AI sector.
- Revenue Growth Potential: CoreWeave's revenue backlog stands at an impressive $99.4 billion, growing 284% year-over-year, with an estimated 36% conversion to revenue over the next two years, propelling annualized revenue from $18 billion to $30 billion.
- Optimistic Market Outlook: Goldman Sachs predicts U.S. data center power demand will double from 31GW to 66GW by 2025, and with CoreWeave's contracted power capacity of 3.5GW, the company is well-positioned to significantly increase its market share in the booming AI data center market.
See More
CoreWeave Secures Nvidia Investment and Market Potential
- Investment Scale and Growth Potential: Nvidia invested $2 billion in CoreWeave in January 2023 to help build AI factories, with the stock appreciating 11% post-investment, indicating strong market confidence in its future growth and positioning it as an ideal portfolio addition.
- Customer Base Expansion: CoreWeave has secured contracts with 10 customers, each committing at least $1 billion for data center capacity, including major players like OpenAI and Anthropic, highlighting its strong appeal and demand in the AI infrastructure sector.
- Revenue and Contractual Capacity: CoreWeave's revenue backlog reached $99.4 billion, growing 284% year-over-year, while quarterly revenue surged 112% to $2.1 billion, showcasing its robust performance in the rapidly expanding AI market and future profitability potential.
- Future Development Goals: CoreWeave aims to increase its active data center capacity to 8 GW by the end of the decade, currently at 1 GW with contracted power capacity of 3.5 GW, indicating the feasibility of its expansion strategy and proactive response to future market demands.
See More
CoreWeave: A Potential Multibagger in AI Infrastructure
- Significant Investment Returns: Nvidia's $2 billion investment in CoreWeave in January 2023 has appreciated by 11% to date, highlighting the strong growth potential in the AI infrastructure sector and further solidifying Nvidia's leadership in the AI market.
- Expanding Customer Base: CoreWeave has secured contracts worth at least $1 billion each with 10 customers, including OpenAI and Anthropic, indicating robust demand in the AI data center market and a diversified client portfolio that is expected to drive future revenue growth.
- Robust Revenue Backlog: CoreWeave's revenue backlog stands at an impressive $99.4 billion, growing 284% year-over-year, demonstrating the company's strong competitive position in the rapidly expanding AI market, with expectations for accelerated revenue conversion enhancing overall financial performance.
- Surging Power Demand: Goldman Sachs predicts that U.S. data center power demand will double from 31GW in 2025 to 66GW, with CoreWeave's contracted power capacity increasing to 3.5GW, showcasing its strategic advantage in meeting market demand.
See More
Nvidia Reports 92% Revenue Surge in Data Center Segment
- Data Center Revenue Surge: Nvidia's data center segment reported a 92% year-over-year revenue increase last quarter, indicating an acceleration in AI factory build-outs, which positions the company favorably in the rapidly growing AI workload market and is likely to attract more investor interest.
- Astera Labs Strong Performance: Astera Labs' stock has surged 357% over the past year, with its Scorpio smart fabric switches contributing 15% to total revenue in 2025, demonstrating the company's increasing competitiveness in the high-speed networking hardware market, with potential for further highs in the future.
- CoreWeave Cloud Service Expansion: CoreWeave's revenue more than doubled year-over-year in Q1, reaching nearly $2.1 billion, showcasing its robust capability in providing cloud computing capacity for generative AI workloads, with projections of revenue nearing $40 billion by 2028, indicating significant growth potential.
- Optimistic Growth Outlook for Vertiv: Vertiv's revenue grew 30% year-over-year in Q1, with management forecasting a 34% increase to $13.8 billion for the full year, and with its leadership in power management and cooling systems, it is expected to achieve a 32% annualized earnings growth over the next few years, benefiting from the data center boom.
See More
AI Investment Fuels Growth for Data Center Suppliers
- Significant Revenue Growth: CoreWeave's revenue more than doubled year-over-year in Q1, reaching nearly $2.1 billion, indicating strong demand in generative AI workloads, with projections suggesting revenue could approach $40 billion by 2028, highlighting the company's potential in the rapidly growing cloud infrastructure market.
- Accelerated Market Demand: Nvidia reported a 92% year-over-year growth in its data center segment, reflecting the accelerated build-out of AI factories that drives demand for high-performance chips, further solidifying its leadership position in the industry.
- Product Expansion Strategy: Astera Labs has expanded its product portfolio over the past three years, with the Scorpio smart fabric switches launched in 2024 contributing 15% of total revenue in 2025, and is expected to continue growing at a high double-digit rate in the coming years, enhancing its competitive edge in the market.
- Profitability Enhancement: Vertiv's revenue grew by 30% year-over-year in Q1, with management forecasting a 34% increase for the full year to $13.8 billion, demonstrating strong performance in power management and cooling systems, with potential for higher margins in the future.
See More
CoreWeave and Nvidia Partnership Fuels AI Growth
- Core Advantage: CoreWeave has secured over $99 billion in contracts through its partnership with Nvidia, becoming the first cloud provider to integrate Nvidia's Vera Rubin NVL72 platform, thereby gaining a crucial competitive edge in a crowded market.
- Financial Performance Analysis: Despite CoreWeave's revenue reaching nearly $2.1 billion in Q1 2026, a 112% year-over-year increase, its $740 million loss and nearly $25 billion debt level have raised investor concerns, potentially putting pressure on its stock price.
- Nokia's Transformation and Growth: Nokia's partnership with Nvidia allows its 5G equipment to embed Nvidia's ARC-Pro processors; although Q1 2026 revenue grew only 2%, its stock has surged approximately 170% over the past year, reflecting market optimism about its future potential.
- Future Outlook for AI Functionality: Collaborations with T-Mobile and French telco Orange will drive the implementation of AI capabilities, with plans to integrate these into upcoming 6G technology, suggesting that despite current financial performance, this strategic partnership could yield long-term growth opportunities for Nokia.
See More
