CoreWeave Stock Plunges Despite Record Backlog as Data Center Delays Dampen AI Infrastructure Growth

Once-hot cloud AI play CoreWeave is tanking. A JPMorgan downgrade is adding to the pressure

Near-term supply chain pressures will cap gains for CoreWeave , according to JPMorgan. The bank downgraded CoreWeave, which provides infrastructure for artificial intelligence firms, to neutral from overweight. Analyst Mark Murphy also lowered his price target to $110 per share from $135, signaling just 4% upside ahead. Murphy's downgrade followed CoreWeave's third-quarter earnings release . While the company reported better-than-expected third-quarter revenue, its full-year revenue guidance came in below analysts' expectations. CoreWeave shares tanked 10% in the premarket. CRWV YTD mountain CRWV YTD chart CoreWeave also said that one third-party data center developer is behind schedule. While CEO Mike Intrator assured investors that this delay wouldn't affect CoreWeave's backlog, JPMorgan's Murphy wasn't so sure, and pointed to the company's supply constraints as a major headwind. "The new variable is supply chain pressures escalating to a point that they are impacting one specific third-party data center developer used by CoreWeave, which is running behind schedule and shifts some of CoreWeave's revenue out of Q4," he wrote. "This means that not only are the major hyperscalers being forced to issue capacity-constrained revenue guidance, but the phenomenon is also spreading to CoreWeave, which has historically set one of the highest bars for on-time orchestration and delivery cadences in deployment of modern AI data centers." But Murphy emphasized that, in the long run, he sees "tremendous" opportunity for CoreWeave to serve the AI mega-trend and remains fundamentally constructive on the name. "Our view of CoreWeave's longer term opportunity remains unchanged, and it is possible that its revenue ramp will get back on track in Q1/Q2 of next year, as we saw with Microsoft's Azure surge in its most recent March and June quarters," he added. "However, we remain contemplative of the unprecedented and mounting industry-wide pressures across supply chains, and resultant difficulty of confidently forecasting how and when all of the interconnected variables will smoothly reach a point of equilibrium." Shares of CoreWeave have soared 164% since going public in March.

CoreWeave shares sink as weak outlook offsets big AI deals

CoreWeave shares plunged on Tuesday after it posted lower-than-expected full-year guidance, overshadowing strong third-quarter results and a string of new artificial intelligence partnerships. The New Jersey-based AI infrastructure firm reported revenue of $1.36 billion for the quarter, beating analyst forecasts of around $1.29 billion. Revenue surged 134% from a year earlier, while the company's net loss narrowed to $110 million from about $360 million. CoreWeave's quarterly growth was driven by new contracts with major tech firms. The company announced a $6.5 billion expansion of its business with OpenAI, a six-year deal with Meta worth up to $14.2 billion, and a $6.3 billion agreement with Nvidia for cloud computing capacity. Despite the gains, CoreWeave forecast 2025 revenue between $5.05 billion and $5.15 billion, short of analysts' $5.29 billion average estimate. Shares were down 9% in premarket trading Tuesday. Chief executive Mike Intrator told investors that construction delays at one data center were weighing on its near-term outlook. "There was a problem at one data center that's impacting us, but there are 41 data centers in our portfolio," he said. He said the company remains constrained by the availability of "powered-shell" data centers, which are facilities that are partly built and require CoreWeave to install its own equipment. "There's plenty of power right now, and we believe that there will be ample power for the next couple of years. But really where the challenge is, is the powered shell," Intrator said. He added that the company is building its own data center infrastructure in Pennsylvania and expects most of the delay to be resolved early next year. "The overwhelming majority of the delay that you're seeing should be taken care of within Q1 of next year." In October, shareholders of data center operator Core Scientific rejected CoreWeave's proposed $9 billion acquisition. The company's finance chief, Nitin Agrawal, said 2026 capital spending will be "well in excess of double" this year's estimated $12 billion to $14 billion.

CoreWeave earnings: Data-center operator posts $56 billion in contracted future revenue, but revenue guidance drops | Fortune

CoreWeave needed a lot of things to go right on Monday as it released third-quarter financial results, and one of the most critical was showing that its contracted future revenues could hit a $50 billion target Wall Street had set as a benchmark for the AI data-center and infrastructure operator. In its announcement, CoreWeave confirmed it nearly doubled its revenue backlog, which includes "remaining performance obligations" (RPOs) and other amounts it estimates will be recognized as revenue, to $55.6 billion, up from $30 billion the previous quarter. The surging backlog, which represents future revenues from customers, was driven by contracts with Meta, OpenAI, and French AI startup Poolside. Earnings and revenue, meanwhile, both beat analysts' consensus estimates. The company also reported an increase in the debt on its balance sheet, however, and it revised its full-year revenue guidance downward. Following its earnings release and call with analysts, the stock dropped 6% in after-hours trading. Some investors have trained a gimlet eye on CoreWeave as more skeptics kick the tires of the booming AI trade and the concurrent infrastructure buildout. Concerns about CoreWeave, which some see as a potential canary-like indicator of weakness in the AI ramp-up, and about the AI build-out in general have sent the stock on a journey that has seen it tumble more than 30% from mid-August highs. The downward revision in revenue guidance reflected delays in construction of some of CoreWeave's data centers. "While we are experiencing relentless demand for our platform, data center developers across the industry are also enduring unprecedented pressure across supply chains," CEO Michael Intrator said during the analysts' call. "In our case, we are affected by temporary delays related to a third-party data-center developer who is behind schedule." Chief financial officer Nitin Agrawal offered full-year 2025 revenue guidance of $5.05 billion to $5.15 billion, down slightly from the guidance Intrator offered on the second-quarter earnings call, of between $5.15 billion to $5.35 billion. The customer impacted by the delay agreed to adjust the delivery schedule and extend the expiration date, Intrator said, which means CoreWeave will maintain the total value of the original contract. Agrawal said the company's 2025 capex spending would be between $12 billion to $14 billion, down significantly from the $20 billion to $23 billion Intrator forecast last quarter. However, Agrawal said CoreWeave expects 2026 capex to soar. "Given the significant growth in our backlog and continued insatiable demand for our cloud services, we expect capex in 2026 to be well in excess of double that of 2025," Agrawal said. CoreWeave reported revenues of $1.4 billion for the quarter, up from $584 million in the same quarter last year and beat analysts' estimates. Profitability, at least by traditional GAAP measures, remains elusive. CoreWeave reported a net loss of $110 million, although it was an improvement over its $359.8 million loss in the third quarter last year and also better than analysts expected. Adjusted net loss, which shows financial performance without extraordinary items, was $41 million for the quarter compared to the same quarter last year when it was break-even, Agrawal said. Adjusted EBITDA, which shows earnings without certain one-time expenses, were $838 million in the third quarter, compared to $379 million in Q3 2024. Operating income, a metric that shows profit from core businesses, fell to $51.9 million, compared to the same quarter last year when it was $117.1 million. Operating margins shrunk to 4% from 20%. Meanwhile, adjusted operating income, which shows a different view on core business performance, was $217 million for the third quarter, compared to $125 million in the third quarter of 2024, said Agrawal, the CFO. CoreWeave's third quarter adjusted operating margin was 16%, due to higher revenues, lower costs, and the timing of data center deliveries from third parties. While Monday was just this side of positive for CoreWeave, analysts who are bearish on the AI cloud computing company remain leery of its finances. They see the company as at risk of being overwhelmed by the significant financial commitments it has taken on to build out data centers, which currently look disproportionately large compared to its revenues and cash flow. Based on its latest earnings release, CoreWeave has $9.7 billion in bills due within the next 12 months on its balance sheet, and a total of $14 billion in current and longer-term debt. Last quarter, those figures were $7.6 billion and $11 billion, respectively. CoreWeave also has $34 billion in scheduled lease payments on contracts that will commence between now and 2028. Interest expense reached $311 million for the quarter, nearly triple the figure from the year-earlier period, of $104 million. CoreWeave bulls, meanwhile, remain confident that revenues from the company's book of contracts will eventually far outstrip its debt obligations. During the past three months, CoreWeave has announced a spate of significant deals, booking a $14.2 billion deal to provide Meta with computing capacity and an agreement with Poolside for a data center with 40,000 of Nvidia's coveted GPUs.

CoreWeave's stock wavers on data center delay and lower revenue forecast - SiliconANGLE

CoreWeave's stock wavers on data center delay and lower revenue forecast Artificial intelligence compute infrastructure company CoreWeave Inc. delivered better than expected financial results today, but its stock lost ground after-hours when it revealed a tepid revenue forecast and said one of its third-party developers has fallen behind schedule on a key data center facility. The company reported a third-quarter loss before certain costs such as stock compensation of 22 cents per share, easily beating Wall Street's estimate of a 40-cent-per-share loss. Revenue for the period rose by an impressive 134% to $1.36 billion in the quarter, also surpassing the analysts' target of $1.29 billion. The increased revenue had the effect of narrowing CoreWeave's net loss considerably to just $110 million, down from a $360 million loss in the year-ago period. CoreWeave Chief Executive Michael Intrator (pictured) said the company's results are a reflection of its disciplined execution across every part of its business. "CoreWeave's position as the essential cloud for AI has never been stronger as we drive growth through focus and innovation to power the next generation of AI," he added. The fortunes of CoreWeave are tied directly to those of the AI industry, because the company specializes in renting out access to Nvidia Corp.'s graphics processing units and has secured numerous multibillion dollar deals with key cloud infrastructure providers such as Microsoft Corp. and Google LLC. The company said its backlog stood at $55.6 billion at the end of the quarter, with 2.9 gigawatts in power under contract, up from 2.2 gigawatts three months earlier. The company made some big announcements during the quarter, notably including a $6.5 billion expansion of its partnership with OpenAI Group PBC. It also signed a new, six-year deal with Meta Platforms Inc. that could ultimately be worth up to $14.2 billion, along with another contract from an undisclosed "leading hyperscaler". Despite the progress on the deal front, Intrator told analysts on a conference call that the company remains "supply constrained". He explained that the problem has to do with partly completed "powered-shell" data centers where the company intends to set up its own infrastructure, he said. Intrator also admitted that one of the company's third-party contractors has fallen behind schedule. He told analysts that the delay in construction won't impact the company's backlog, because the customer impacted by the holdup has agreed to adjust its delivery schedule. The original value of the contract will be maintained, he added. "There was a problem at one data center that's impacting us, but there are 32 data centers in our portfolio," Intrator pointed out. However, one problem with that delay is that it's likely going to impact CoreWeave's near-term fortunes. The company offered a full-year revenue forecast of between $5.05 billion and $5.15 billion, below Wall Street's target of $5.29 billion. CoreWeave has enjoyed a wild ride since going public on the Nasdaq in March, when it sold its shares at a price of $40 each. The stock closed at $105.61, representing a gain of more than 165%, only to fall almost 6% in late trading. Still, it continues to outperform the Nasdaq by a long way, with the broader index up just 32% over the same period. However, CoreWeave has had its share of disappointments too, including last month when shareholders of the data center infrastructure company Core Scientific Inc. voted to decline a $9 billion acquisition offer, claiming it was undervalued and didn't recognize its growth potential. CoreWeave chose not to increase its offer, and so the deal has been terminated. "We respect the decision of Core Scientific's stockholders regarding our previously announced merger agreement," CoreWeave said in a statement. "Our partnership with Core Scientific remains strong and will continue to execute on shared growth opportunities. CoreWeave's vision and strategy remain unchanged." Nevertheless, CoreWeave is still planning to spend lots of money in the coming months, acquisitions or not. On the conference call, Chief Financial Officer Nitin Agrawal said the company's capital expenditures in fiscal 2026 will be "well in excess of double" its $12 billion to $14 billion forecast for the current year.

Jim Cramer Grills CoreWeave CEO Over Data Center Delays Despite $55.6 Billion Backlog - CoreWeave (NASDAQ:CRWV)

CoreWeave Inc. (NASDAQ:CRWV) CEO Michael Intrator was questioned by CNBC's Jim Cramer on Tuesday regarding data center delays that have impacted the company's stock, despite reporting a massive $55.6 billion backlog. Cramer Questions CORZ's Role In CRWV's Data Center Delay The tense "Squawk on the Street" interview followed CoreWeave trimming its 2025 revenue forecast, with Cramer calling out its partner, Core Scientific Inc. (NASDAQ:CORZ). Cramer challenged Intrator on the guidance cut, saying, "this was not the quarter you wanted." He linked the delays to Core Scientific, which he described as a "failed Bitcoin miner that came out of bankruptcy," and listed affected sites in Texas, Oklahoma, North Carolina, and Georgia. Intrator pushed back, stating, "I am proud of this quarter," attributing the entire issue to delay "at a singular data center provider." He assured investors that the impact was temporary and that the company was "not losing any customers." CRWV Drops Over 16% Following Lower 2025 Revenue Guidance The market's sharp sell-off was triggered by CoreWeave lowering its 2025 revenue guidance to a range of $5.05 billion to $5.15 billion, down from a previous forecast of $5.15 billion to $5.35 billion. The stock declined 16.31% to $88.39 apiece on Tuesday but rose 1.84% in after-hours trading. The stock is up 120.98% since its listing in March 2025. This news overshadowed an otherwise strong third-quarter report, which saw the company report $1.36 billion in revenue, beating estimates. The company reported a smaller-than-expected loss. See Also: Jim Cramer Says Forget CoreWeave As He Reverses On IREN, Nebius: Past Doubts 'Don't Matter,' Amid 'That Much Demand' CRWV's Backlog Swells On 'Insatiable Demand' For AI The company's revenue backlog nearly doubled to $55.6 billion, highlighting what Intrator called "insatiable demand" for its AI infrastructure. During the interview, Intrator also worked to define CoreWeave's "core competency" as its "proprietary software solution" for managing AI supercomputers. "We built the software layer that allows us to run the physical infrastructure... better than anyone else," he said. It maintains a weaker price trend over the short, medium, and long terms. Additional performance details, as per Benzinga's Edge Stock Rankings, are available here. The futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading higher on Wednesday after closing in a mixed manner on Tuesday. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Robert Way / Shutterstock.com CRWVCoreWeave Inc $90.02-14.8% Overview CORZCore Scientific Inc $17.33-10.2% Market News and Data brought to you by Benzinga APIs

CoreWeave Is 'Undervalued' Despite Supply Delay: Analyst - CoreWeave (NASDAQ:CRWV)

CoreWeave Inc (NASDAQ:CRWV) faces a short-term setback after cutting its fiscal 2025 revenue outlook due to supply constraints, though demand for its artificial intelligence infrastructure remains strong, with backlog up 50% quarter-over-quarter. Despite a temporary slowdown from construction delays at one data center, CoreWeave boasts a strong AI infrastructure business. Bank of America Securities analyst Brad Sills maintained CoreWeave with a Neutral and lowered the price forecast from $168 to $140. Also Read: CoreWeave's Top Brass Just Sold $1 Billion In Stock After 250% Rally Sills expects temporary weakness for CoreWeave, calling it a short-term issue in an otherwise strong growth story for one of the most essential AI infrastructure players. The analyst noted that CoreWeave cut its fiscal 2025 revenue outlook by $150 million to $5.10 billion, mainly due to a supply constraint rather than weakening demand. He expects this issue to be resolved by the first quarter, emphasizing that demand remains strong. The company's remaining performance obligations (RPO) and backlog grew 50% quarter over quarter, driven by expansion deals with existing AI enterprises and new AI labs. Despite the setback, Sills said the stock -- down about 45% from its June high -- looks undervalued compared to peers. It's currently trading at a forward EV/calendar year 2027 EBIT multiple of 19 times, below the neo-cloud group average of 33 times. However, the analyst cautioned that earnings estimates may stay muted until supply issues are fixed. He lowered its price objective, applying a 24 times calendar year 2027E EV/EBIT multiple instead of 25 times, reflecting the one-time delay in bringing new data center capacity online. CoreWeave's fiscal 2025 capital expenditure guidance was reduced by 40%, from $21.5 billion to $13 billion, while revenue guidance fell 3% to $5.1 billion, implying a 9% hit to fourth-quarter expectations. The revision stemmed from construction delays at a single data center -- one out of 41 -- which temporarily slowed graphics processing unit installations and delayed revenue recognition, Sills noted. The company has since added engineering teams at the affected site to prevent further slippage and remains confident the issue will be fully resolved by early next year, the analyst told. Sills highlighted that the setback is isolated, not systemic, and demand fundamentals remain exceptionally strong. Backlog surged 200% year over year to $55 billion, supported by diverse, long-term commitments from frontier AI companies and large enterprises. Industry indicators reinforce this trend: Anthropic expects $70 billion in revenue by 2028 (up from $9 billion in 2025), OpenAI forecasts $100 billion by 2027 (up from $13 billion now), and Microsoft Corp's (NASDAQ:MSFT) new prepayment-based deal with Bitcoin miner Iren marks a milestone in AI infrastructure contracting. Sills now expects fourth-quarter revenue of $1.54 billion (down from prior forecast of $1.78 billion) and adjusted EPS loss of $(0.45) (down from previous guidance of $(0.18)). CRWV Price Action: CoreWeave shares were trading lower by 13.53% to $91.33 at the time of publication on Tuesday. Read Next: SoftBank Says Skipping AI Is Riskier Than Betting Big Image: Shutterstock CRWVCoreWeave Inc$91.71-13.2%OverviewMSFTMicrosoft Corp$504.46-0.30%Market News and Data brought to you by Benzinga APIs

CoreWeave Bulls In For 'Wild, Lumpy, Volatile Ride': JPMorgan - CoreWeave (NASDAQ:CRWV)

CoreWeave Inc. (NASDAQ:CRWV) is still one of the brightest stars in the AI infrastructure galaxy -- but JPMorgan says the flight path just got turbulent. Analyst Mark R. Murphy trimmed his rating to Neutral with a $110 price target (from $135), warning that while CoreWeave's long-term opportunity remains "tremendous," investors should brace for what he calls a "wild, lumpy, volatile ride." * Track CRWV stock here. The downgrade follows an eventful third quarter, during which backlog nearly doubled to a record $56 billion, even as supply chain snags began to ripple through its data center expansion plans. Read Also: CoreWeave Turns $50 Million Convertible Notes Into $12.5 Billion AI Jackpot For This Hedge Fund Supply Chains Slow The AI Engine Murphy says the biggest speed bump came from a single third-party data center developer that fell behind schedule -- delaying construction and forcing CoreWeave to shift revenue from the fourth quarter into the first. That hiccup prompted management to cut FY25 revenue guidance by $150 million and lower CapEx by $8.5 billion. He calls this "a capacity-constrained quarter," underscoring that even CoreWeave -- once seen as the AI cloud upstart immune to big-tech bottlenecks -- is now feeling the same global squeeze on power and compute infrastructure. Still, the company's momentum remains impressive: revenue grew 134% year over year, operating income came in $40 million ahead of estimates, and new customers like Crowdstrike Holdings Inc (NASDAQ:CRWD), Rakuten Group Inc (OTCPK:RKUNY), Poolside AI, Jasper Therapeutics Inc (NASDAQ:JSPR), and NASA joined the client list. Sovereign demand is also taking shape through CoreWeave Federal, serving agencies like NASA's Jet Propulsion Lab and the UK government. Long-Term AI Story Still Intact Despite the near-term turbulence, JPMorgan remains fundamentally constructive. Murphy expects CoreWeave's revenue to grow 166% in FY25 and forecasts CapEx in 2026 to more than double -- signaling confidence in demand for AI compute capacity. But investors may need patience. "We continue to view CoreWeave as a tremendous long-term opportunity," Murphy writes, "yet the stock's path will likely remain a wild, lumpy, volatile ride requiring a higher risk tolerance than most investors possess." In short: CoreWeave's backlog shows AI demand remains strong -- delivery timing is what's shifting. CRWVCoreWeave Inc $96.60-8.53% Overview CRWDCrowdStrike Holdings Inc $554.80-0.49% JSPRJasper Therapeutics Inc $1.938.43% RKUNYRakuten Group Inc $6.44-5.07% Market News and Data brought to you by Benzinga APIs

Investor Outlook: CoreWeave shares slide as analyst warns data centre delays could destroy value

Shares of CoreWeave are under pressure after the AI cloud-computing firm issued full-year guidance below Wall Street expectations. The company's struggles to expand its data centre capacity have raised doubts about its ability to sustain rapid growth. BNN Bloomberg spoke with Gil Luria, head of technology research at D.A. Davidson, who maintains a sell rating and the lowest price target on the stock. Luria says the company's heavy debt load and operational delays could destroy shareholder value as competition intensifies in the AI infrastructure market. Read the full transcript below: ROGER: Shares of CoreWeave are under pressure today after the AI cloud-computing company provided guidance for the full year that fell below analyst consensus. My next guest has the lowest price target on Wall Street and believes the business is not worth scaling. Let's welcome Gil Luria, head of technology research at D.A. Davidson. Gil, thanks very much for joining us. GIL: Thanks for having me. ROGER: We saw revenues come in better than expected, but it's the guidance that has you worried. Talk a little about the revenue, though. What did you like or not like about it? GIL: Well, the company is in ramp-up mode. They're providing compute capacity for Microsoft and, in the future, they'll be providing capacity for OpenAI -- and that's what got pushed out. They were supposed to invest US$20 to US$23 billion of capital expenditure this year to create that capacity, and now they're saying it will only be US$12 to US$14 billion, which is obviously considerably less. That puts them behind, and they actually had to go to OpenAI to renegotiate their deal so they could continue to get paid, even though they're that late. That's the disappointing part. CoreWeave billed itself as the company that can get compute capacity out quickly, so the fact that they had to push out this much of the data centre expansion into next year is the disappointment today. ROGER: So what went wrong then? GIL: Data centres are hard. CoreWeave is mostly a financial company that exists to set up loans, match them with chips and customers, and they're stumbling on the fact that building data centres has always been difficult. It's especially hard now, since there are so many bottlenecks -- it's hard to get the land, the power, and even electricians to come in and install HVAC systems. They had a deal with Core Scientific, which they tried and failed to buy, to help with that capacity. Now Core Scientific isn't delivering on its promises. ROGER: Were they too ambitious, or was it something else? GIL: We don't know all the details, but again, these are challenges that many companies building out data centres are facing. It's just that most of the other companies -- including Nebbias, a competitor that reported this morning -- are still able to get the capacity out. CoreWeave has needed to push that into next year, based on some combination of those difficulties. A lot of things need to happen for you to be able to turn on a data centre and provide that compute capacity to a customer. ROGER: The backlog, I think, is at US$55.6 billion. It includes 2.9 gigawatts in contracted power. Are they going to be able to come close to that? Are they looking at lawsuits or any kind of challenges if this doesn't come through? GIL: I'd ask another question -- should they roll out that capacity? So far, CoreWeave has around 30 data centres and is providing a return on assets of about four per cent. It costs them nine per cent to borrow the capital to invest in those data centres. That's very much like selling $10 bills for $5 -- it's like borrowing on margin to buy treasuries. Even if they do deploy that capital and complete the backlog, they're destroying value. CoreWeave is the poster child for what's going wrong with the great data centre buildout. Companies like Microsoft, Amazon, Google and Meta are using cash on hand and customer funds to build data centres and get good returns, while these incremental players are borrowing very expensive debt to build something they don't have experience doing. They're destroying value as they go. So it's less a matter of whether they can convert the backlog -- it's whether they should. ROGER: Is any of that tempered by the fact they announced their sixth contract from a prominent hyperscaler, though they haven't said who it is? GIL: Those hyperscalers are taking advantage of the situation. If someone else is willing to build data centres for them and provide capacity, that means less capital expenditure for the hyperscalers -- less drag on margins, less borrowing they need to do. So they have leverage there. They'll continue to buy inexpensive capacity from CoreWeave as long as someone is willing to lend CoreWeave the money to build those data centres. That's a good deal for the mega caps and hyperscalers -- not a good deal for CoreWeave's shareholders. ROGER: Right, and you have a sell rating on the stock, with the lowest price target set at US$36? GIL: That's right. We think the debt holders really own all of CoreWeave's assets. Equity holders will get almost nothing by the time it's all said and done. ROGER: Can they move it then? Is anyone out there interested in it? GIL: Once they go bankrupt, Microsoft or Meta will probably buy the assets for pennies on the dollar.

CoreWeave stock falls after The Verge labels it "heart of AI bubble" By Investing.com

Investing.com -- CoreWeave shares dropped 6% Thursday following a report from The Verge that characterized the company as being at "the heart of the AI bubble," raising questions about its business model and dependence on Nvidia. The tech publication previewed an upcoming investigative story that examines CoreWeave's rapid transformation from an Ethereum mining operation to a major AI infrastructure provider now valued at nearly $50 billion. According to the report, the New Jersey-based company, founded by former commodities traders, pivoted from crypto mining to AI computing when cryptocurrency markets declined. CoreWeave's business model involves raising substantial capital to build data centers filled with Nvidia GPUs, which it then leases to major AI companies. The company has secured multi-billion dollar contracts with tech giants like Meta and OpenAI this year alone. However, The Verge's investigation suggests CoreWeave's success story may be more complex than it appears, highlighting the company's "creative financing" methods and what it describes as an unusually dependent relationship with Nvidia. The report indicates that CoreWeave "could not exist without extraordinary levels of financial investment from Nvidia" and questions the sustainability of its business model. The company went public in March 2023 and has positioned itself as providing essential infrastructure for the AI industry's computing needs. The full investigative report from The Verge is expected to be published next week, potentially providing more details about CoreWeave's finances and business practices.

Compass Point initiates CoreWeave stock with Buy rating, $150 price target By Investing.com

Investing.com - CoreWeave (NASDAQ:CRWV) received its first analyst coverage on Thursday as Compass Point initiated the AI infrastructure company with a Buy rating and a $150.00 price target. The stock currently trades at $85.43, with analyst targets ranging from $36 to $234, according to InvestingPro data. The firm highlighted CoreWeave 's established relationships with major tech companies, noting that despite going public recently on March 28, 2025, the company already counts Microsoft among its customers. CoreWeave's revenue backlog reached $55.6 billion at the end of the third quarter of 2025, representing an 85% sequential increase from $30.1 billion in the second quarter, according to Compass Point's analysis. The backlog consists of $50.0 billion in remaining performance obligations plus $5.6 billion in additional amounts expected under committed contracts, including substantial deals with OpenAI ($22.4 billion committed) and Meta ($14.2 billion through 2031). Nvidia, which holds a 7% stake in CoreWeave, has agreed to a $6.3 billion capacity backstop ensuring any unused GPUs continue generating revenue through 2032, a factor Compass Point cited as evidence of CoreWeave's "durable" growth potential. In other recent news, CoreWeave, Inc. announced an expansion of its revolving credit facility from $1.5 billion to $2.5 billion, with the maturity date extended to November 2029. This expansion is led by major financial institutions including JPMorgan Chase Bank, Goldman Sachs, and Morgan Stanley. CoreWeave reported third-quarter revenue of $1.4 billion, surpassing consensus estimates, with an adjusted operating margin of 15.9%. Despite exceeding revenue expectations, CoreWeave faced a downgrade from JPMorgan, which shifted its rating from Overweight to Neutral due to supply chain delays impacting revenue timing. Stifel reiterated its Hold rating with a $120 price target, acknowledging strong GPU demand as a positive factor. Macquarie adjusted its price target to $115, citing delivery delays affecting fourth-quarter performance, while BofA Securities lowered its price target to $140 due to supply constraints. CoreWeave's fiscal year 2025 outlook was reduced by $150 million to $5.10 billion, with BofA noting these constraints are expected to be resolved by the first quarter of next year. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

CoreWeave beats third-quarter revenue estimates on AI computing boom

(Reuters) -AI cloud provider CoreWeave beat Wall Street estimates for third-quarter revenue on Monday, benefiting from surging demand for its computing infrastructure that powers artificial intelligence workloads. CoreWeave has cemented its position as a key infrastructure partner for the biggest names in technology, landing a string of multibillion-dollar deals, including from Meta Platforms and OpenAI, that underscore the voracious appetite for AI-powering graphics processing units. The company's third-quarter revenue more than doubled to $1.36 billion, beating analysts' average estimate of $1.29 billion, according to data compiled by LSEG. The period reflected a phase of explosive growth for the company, marked by major new customer agreements. In September, it signed a $14 billion deal to provide AI infrastructure to Meta and expanded a pact with OpenAI for $6.5 billion. Its contract with the ChatGPT creator now exceeds $22 billion. CoreWeave shares, however, were down less than 1% in extended trading. The stock has been volatile since its debut earlier this year, as investors weighed massive contract wins against heavy spending and strategic setbacks. The stock, initially priced at $40 per share in its IPO, has more than doubled in value as of Monday's close, valuing the company at more than $50 billion. CoreWeave's aggressive expansion plans hit a snag in late October when crypto miner Core Scientific terminated a $9 billion all-stock merger agreement. The company posted a loss of 22 cents per share, narrower than the $1.82 per share reported a year earlier. Adjusted third-quarter core profit of $838.1 million beat the estimate of $811.6 million. (Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar)