CoreWeave [CRWV] is a technology company that provides compute resources to artificial intelligence (AI) systems through its cloud platform. The company originally operated as a cryptocurrency mining firm.
The firm listed on the Nasdaq on March 28, 2025, in a muted debut, but since then its share price has more than quadrupled in value as investor enthusiasm for an AI boom grows.
This stock spotlight will discuss the latest developments, earnings, market performance and key risks for CRWV stock.
Key Developments: CoreWeave Signs OpenAI and IBM
In January 2025, CoreWeave announced a collaboration deal with IBM [IBM] to build an AI supercomputer powered by CoreWeave’s GPU-as-a-service cloud platform.
A couple of weeks ahead of its stock market listing in March, CoreWeave signed an agreement with OpenAI to provide compute resources in a five-year deal worth up to $11.9bn. As part of the deal, OpenAI acquired CoreWeave stock worth $350m.
In May, OpenAI signed an additional agreement for CoreWeave’s cloud computing services, where the Sam Altman-led firm committed to pay CoreWeave $4bn through April 2029.
In early June, CoreWeave signed a 15-year lease agreement worth $7bn with Applied Digital [APLD]. Under the agreement, Applied Digital agreed to host CoreWeave’s AI and high-performance computing infrastructure at its North Dakota data center.
CRWV Share Price: Over 300% Gain
CoreWeave set an IPO price of $40 per share. On March 28, CRWV shares opened lower at $39 before closing flat on their first trading day.
However, since its debut, CoreWeave’s share price has surged as much as 316.57% to hit a record high of $166.63 on June 4.
CoreWeave’s Revenue Skyrockets
In fiscal 2024, CoreWeave reported a 737% year-over-year increase in revenue to $1.92bn.
Net loss for the year widened to $863.45m, from $593.75m previously.
In its first earnings filing since going public, CoreWeave posted a 420% year-over-year jump in revenue to $981.63m for Q1 2025.
Quarterly net loss widened to $314.64m from $129.25m in Q1 2024.
The company reported a revenue backlog of $25.9bn as of March 31, 2025.
Comparing CoreWeave, Nebius and Amazon
| CRWV | NBIS | AMZN |
Market Cap | $77.80bn | $12.60bn | $2.30trn |
P/S Ratio | 27.86 | 77.57 | 3.59 |
Estimated Sales Growth (Current Fiscal Year) | N/A | 346.40% | 8.93% |
Estimated Sales Growth (Next Fiscal Year) | 130.92% | 153.11% | 9.67% |
Source: Yahoo Finance
CoreWeave and Nebius Group [NBIS] are known as “neoclouds” — cloud computing platforms that focus on catering to the AI industry. Of the two, CRWV appears more fairly priced in terms of P/S valuation. Analysts are bullish, expecting both companies to more than double their annual revenues next year.
Amazon [AMZN] is included for comparison as the company operates the largest cloud computing platform in the world, according to Synergy Research Group. AMZN is the only profitable company among the three.
CRWV Stock: The Investment Case
The Bull Case for CoreWeave: Nvidia’s Darling
CoreWeave is well-positioned to capitalize on the AI boom, thanks to its close ties with chipmaker Nvidia [NVDA], which held a 7% stake in CoreWeave, as of March 31, 2025.
In April 2023, the two firms signed a service agreement where CoreWeave agreed to provide infrastructure and platform services to Nvidia.
This partnership has given CoreWeave priority access to Nvidia’s latest GPU chips, granting the company a first-to-market advantage over competing cloud computing platforms.
The Bear Case for CoreWeave: Debt-Laden and Capital-Hungry
Long-term economic sustainability, capital-intensive operations and high debt are among the key concerns for CoreWeave investors.
CoreWeave is currently an unprofitable business. Despite revenue of over $1.9bn in 2024, the company reported $863.45m in losses, reflecting its capital-intensive business model.
Additionally, the company’s revenue stream was highly concentrated, with Microsoft [MSFT] alone accounting for 62% of CoreWeave’s total revenue in 2024.
As of March 31, 2025, CoreWeave recorded total debt of around $8.7bn, up from $8bn reported three months prior.
CoreWeave also reported $3.1bn in operating lease liabilities as the company leases and does not own its data centers.
Conclusion
CoreWeave is at the forefront of AI development, having established itself as one of the largest neocloud companies in the world. Investors who are bullish about the company’s AI-driven growth story should consider the key risks highlighted in this stock spotlight article.
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