CoreWeave: Benefiting From AI Workload Growth; Initiate With 'Buy'

Lighting Rock Research
2.13K Followers

Summary

  • CoreWeave is a leading AI hyperscaler with strong competitive advantages, robust data center infrastructure, and highly sticky, recurring multi-year contracts.
  • The company is experiencing explosive growth, highlighted by major deals with OpenAI and large AI enterprises, validating its technology and future adoption potential.
  • I forecast rapid revenue growth through FY28, supported by a massive and expanding AI infrastructure market, with gradual margin expansion despite heavy CAPEX investments.
  • Key risks include customer concentration, high capital needs, and reliance on Nvidia, but I believe CoreWeave's holistic AI solutions justify a Buy rating with a $191 fair value.

Shot of Data Center With Multiple Rows of Fully Operational Server Racks. Modern Telecommunications, Artificial Intelligence,server room,3d rendering

Oselote

CoreWeave (CRWV) is an AI Hyperscaler, offering proprietary software and cloud services for enterprise customers through its CoreWeave Cloud Platform. I like the company’s unique value proposition in the rapidly growing AI hyperscaler market. I am initiating with a ‘Buy’ rating

This article was written by

2.13K Followers
I am a growth-oriented investor, conducting fundamental research. Long-term focus, independent thinking. I prefer companies with deep moats and high recurring sales growth.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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