CoreWeave: Investors Better Hope There's No Brewing AI Bubble

(10min)

Summary

  • CoreWeave, Inc.'s aggressive CapEx and rapid revenue growth highlight its ambition to lead in scaling AI cloud infrastructure, but execution risks remain substantial.
  • OpenAI's large contract boosts CoreWeave's backlog and revenue visibility, yet customer concentration and potential post-2025 slowdown demand caution.
  • The market has already priced in significant optimism, with shares rebounding over 100% from April lows, plausibly limiting near-term upside potential.
  • The roadmap for a more aggressive CapEx ramp in the second half is a double-edged sword that must be closely scrutinized.
  • I argue that, while growth prospects for CRWV seem rosy, the risks of a slowdown in AI infrastructure build-out from 2026 still loom large, potentially impacting its path to profitability.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

artificial intelligence bubble street sign

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CoreWeave: Pure-Play AI Data Center Opportunity

So the AI trade is back. After all the brouhaha over whether President Trump’s tariff mayhem could finally deflate the premium observed in tech and growth stocks, the Nasdaq (QQQ,

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOOGL, META, QQQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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