CoreWeave beats revenue estimates but stock falls as AI infrastructure costs surge

CoreWeave tops revenue estimates as AI boom supercharges cloud demand

May 7 (Reuters) - CoreWeave Inc (CRWV.O), opens new tab beat analysts' estimates for quarterly revenue on Thursday, as the specialized cloud provider tapped into strong demand for its high-performance computing services used to train and deploy artificial intelligence models. The company's shares were flat in volatile extended trading following a jump in operating expenses. Demand for services from the so-called neoclouds, such as CoreWeave and peer Nebius (NBIS.O), opens new tab, has skyrocketed as companies race to ⁠secure the computing capacity required to develop and run AI models. The company reported total revenue of $2.08 billion for the first quarter, compared with analysts' average estimate of $1.97 billion, according to data compiled by LSEG. Its operating expenses more than doubled to $2.22 billion in the quarter. The business model for AI infrastructure is exceptionally capital-intensive. CoreWeave has been in a race to build out data center capacity to meet demand, a strategy ⁠that requires billions in upfront investment. CoreWeave's core advantage lies in its specialized infrastructure and a close relationship with AI chip bellwether Nvidia (NVDA.O), opens new tab, which grants it early and large-scale access to the most sought-after AI hardware. This has made ⁠it a primary destination for AI startups and, increasingly, enterprise clients looking to bypass the capacity constraints at larger cloud providers. Just in the last month, CoreWeave ⁠struck an expanded $21 billion deal for additional cloud computing capacity with Meta (META.O), opens new tab, a $6 billion deal with trading firm Jane Street and a ⁠third one with Anthropic. The company had a revenue backlog of $99.4 billion as of March 31, compared to $66.8 billion at the end of December. Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

CoreWeave tops revenue estimates as AI boom supercharges cloud demand

CoreWeave Inc. has surpassed revenue expectations. Strong demand for its high-performance computing services fuels this growth. These services are crucial for training and deploying artificial intelligence models. The company secured significant deals with Meta, Jane Street, and Anthropic. This positions CoreWeave as a key player in the AI infrastructure race. CoreWeave Inc beat analysts' estimates for quarterly revenue on Thursday, as the specialised cloud provider tapped into strong demand for its high-performance computing services used to train and deploy artificial intelligence models. The company's shares were flat in volatile extended trading following a jump in ⁠operating expenses. Demand ⁠for services from the so-called neoclouds, such as CoreWeave and peer Nebius, has skyrocketed as companies race to secure the computing capacity required to develop and run AI models. The company reported total revenue of $2.08 billion for the first quarter, compared with analysts' average estimate of $1.97 billion, according to ⁠data compiled by LSEG. Its operating expenses more than doubled to $2.22 billion in the quarter. The business model for AI infrastructure ⁠is exceptionally capital-intensive. CoreWeave has been in a race to build out data centre capacity to meet demand, a strategy that requires billions in upfront investment. CoreWeave's core advantage lies in its specialised infrastructure and a close relationship with AI chip bellwether Nvidia, which grants it early and large-scale access to the most sought-after AI hardware. This has made it a primary destination for AI startups and, increasingly, enterprise clients looking to bypass the capacity ⁠constraints at larger cloud providers. Just in the last month, CoreWeave struck an expanded $21 billion deal for additional cloud computing capacity with Meta, a $6 billion deal with trading firm Jane Street and a third one with Anthropic. The company had a revenue backlog of $99.4 billion as of March 31, compared to $66.8 billion at the end of December.

Why Is CoreWeave Stock Falling Friday? - CoreWeave (NASDAQ:CRWV)

Revenue Growth Tops Estimates CoreWeave reported first-quarter revenue of $2.08 billion, topping analyst estimates of $1.97 billion, according to Benzinga Pro. The company posted an adjusted loss of $1.12 per share, wider than estimates for a loss of 90 cents per share. Revenue increased about 112% from a year earlier. CoreWeave said it ended the quarter with a revenue backlog of $99.4 billion. The company secured more than $40 billion in new customer commitments during the quarter, marking its strongest bookings period to date. AI Infrastructure Expansion Accelerates CoreWeave added more than 400 megawatts of contracted power during the quarter, bringing total contracted capacity to more than 3.5 gigawatts, with most expected to come online by 2027. The company said it now has 10 customers each committed to spending at least $1 billion, highlighting growing enterprise demand for AI infrastructure. CoreWeave also said demand remains strong across Nvidia GPU generations, including Ampere, Hopper and Blackwell systems, with near-term capacity largely sold out through 2026. Pricing increased sequentially across GPU tiers as demand for AI training and inference workloads continued to rise. Nvidia Partnership Expands Speaking with CNBC, CoreWeave co-founder and CEO Michael Intrator said Nvidia's growing infrastructure investments underscore the urgency of maintaining sufficient compute capacity across the AI ecosystem. The company also highlighted major customer wins, including Anthropic for Claude model workloads and expanded agreements with Meta Platforms Inc., including a $21 billion contract announced in April. Outlook CoreWeave reaffirmed full-year 2026 guidance for revenue of $12 billion to $13 billion, compared with analyst estimates of $12.5 billion. The company also reiterated adjusted operating income guidance of $900 million to $1.1 billion. For the second quarter, CoreWeave expects revenue of $2.45 billion to $2.6 billion, below analyst expectations of $2.69 billion. It forecast adjusted operating income of $30 million to $90 million as profitability begins to improve. The company raised capital expenditures guidance to a range of $31 billion to $35 billion, citing accelerated data center expansion and higher infrastructure costs. CoreWeave said it expects to exit 2026 with an annualized revenue run rate of $18 billion to $19 billion and sees a path toward more than $30 billion in annualized revenue by 2027. The company added that more than 75% of its expected 2027 revenue is already under contract. CRWV Price Action: CoreWeave shares were down 7.33% at $119.40 during premarket trading on Friday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

CoreWeave Experiencing Growth-Related Short-Term Revenue Fluctuations, Oppenheimer Says

CoreWeave, Inc. is an American technology company founded in 2017, specializing in cloud infrastructure designed for compute-intensive workloads. It has positioned itself as a niche player in a market dominated by generalist giants. Its offering is built on a vertical specialization in artificial intelligence (AI) and related applications, notably high-performance computing (HPC) and graphical rendering. CoreWeave operates a GPU-first architecture, optimized for training and inference of generative AI models. It also targets scientific and financial computing, as well as real-time 3D rendering needs. With its own data centers located in the United States and Europe, the company maintains full control over its infrastructure. This control enables it to deliver high performance, low latency, and flexible deployment capabilities. Some facilities are shared among clients, while others are fully dedicated to a single customer. CoreWeave serves a diverse clientele, ranging from AI startups to research labs, as well as production studios and financial institutions. In addition to its hardware infrastructure, the company develops its own GPU management software. These tools enable intelligent resource allocation, continuous performance optimization, and better cost control. This vertical integration, from hardware to software, enhances the company's competitiveness. CoreWeave stands out through its tailored approach and its ability to meet clients' specific needs. It aims to become the leading provider for AI workloads on a global scale. In a context of surging demand for computing power, its model is appealing due to its specialization and agility.

CoreWeave signals higher capex as component costs rise, shares fall

May 7 (Reuters) - CoreWeave Inc raised the lower end of its annual capital expenditure forecast on Thursday, citing a rise in the prices of components, sending the cloud infrastructure technology company's shares down more than 9% in extended trading. Demand for services from the so-called neoclouds, such as CoreWeave and Nebius, has skyrocketed as tech companies seek the hardware and cloud capacity needed for AI technologies. CoreWeave lifted the lower end of its 2026 capital expenditure to $31 billion from $30 billion while keeping the upper range unchanged at $35 billion. "We are on a fantastic ramp through the balance of this year into 2027 - the why the market takes me up or down on any given day is sort of what the market does," CoreWeave CEO Michael Intrator told Reuters in an interview. "It's not what I'm doing, right? What I'm doing is I'm building a company." Customers are committing to long-term data center investments as technology companies race toward artificial general intelligence, pushing up demand for advanced memory and storage and creating a supply crunch that is driving up prices. Just in the last month, CoreWeave, known for its close relationship with AI chip bellwether Nvidia, struck an expanded $21 billion deal for additional cloud computing capacity with Meta, a $6 billion deal with trading firm Jane Street and a third one with Anthropic. CoreWeave added more than 400 megawatts of contracted power in the first quarter, bringing its total contracted power to more than 3.5 gigawatts, Intrator said on a post-earnings call with analysts. The company reported total revenue of $2.08 billion for the first quarter, compared with analysts' average estimate of $1.97 billion, according to data compiled by LSEG. Its operating expenses more than doubled to $2.22 billion in the quarter, a result of continuing to scale active power capacity, finance chief Nitin Agrawal said on the call. Andrew Rocco, stock strategist at Zacks Investment Research, compared CoreWeave's strategy to Amazon's early days as an e-commerce pioneer, noting that the company is sacrificing short-term profitability in an attempt to dominate the market. "If investors are willing to stay the course, CoreWeave positions itself to be a dominant player in the AI infrastructure industry," Rocco added. For the second quarter, CoreWeave expects revenue in the range of $2.45 billion to $2.6 billion, below analysts' estimate of $2.69 billion. The company had a revenue backlog of $99.4 billion as of March 31, compared with $66.8 billion at the end of December. "I think we did everything that we needed to do to have a great quarter, and I think that is going to lead us into a great back half of the year," Intrator said. (Reporting by Juby Babu in Mexico City and Max A. Cherney in San Francisco; Editing by Sriraj Kalluvila and Stephen Coates)