CoreWeave, a provider of AI infrastructure, has seen its stock soar by 113% in just a month since its recent public listing. The company’s revenue has grown rapidly, jumping from $16 million in 2022 to $1.9 billion in 2024, with first-quarter 2025 revenue hitting $982 million, a 420% year-over-year increase. CoreWeave is witnessing broad-based demand for AI inference capabilities across various industries.
The company reported a massive $25.9 billion backlog, up 63% year-over-year, providing visibility into future growth. CoreWeave also signed a strategic partnership with OpenAI valued at up to $11.9 billion and secured a $4 billion expansion deal with a large AI client. With 33 dedicated AI data centers across the U.S. and Europe, supported by 420 megawatts of active power and up to 1.6 gigawatts of contracted capacity, CoreWeave has built a solid foundation for growth.
The company matches infrastructure spending with customer demand and finances growth through self-amortizing structures. Looking ahead, CoreWeave projects Q2 2025 revenue between $1.06 billion and $1.1 billion and full-year revenue of $4.9 billion to $5.1 billion, up from $1.9 billion in 2024. While the company’s rapid growth requires significant capital investment, which may impact near-term profitability, the long-term growth outlook remains compelling amid accelerating AI adoption.
Wall Street analysts maintain a “Moderate Buy” consensus rating on CoreWeave stock, as its rapid ascent raises valuation concerns.
coreweave’s impressive stock performance
However, as CoreWeave continues to solidify its position as a key enabler of enterprise AI, the momentum in its business is expected to sustain and support its share price.
CoreWeave’s stock has outperformed Nvidia, with a 268% increase year-to-date as of June 15. The company plans to spend at least $20 billion on capital expenditures in 2025, around four times its revenue projections, to meet anticipated future demand. However, this aggressive expansion comes with significant costs, including negative free cash flow of $1.35 billion in Q1 2025 and mounting debt.
While CoreWeave promises rapid growth, its current financial strategy involves heavy spending and high debt, increasing the risk for investors. Potential buyers should carefully evaluate their risk tolerance before considering adding CoreWeave to their portfolios. Bank of America analysts Brad Sills and Carly Liu have updated their views on CoreWeave’s stock following the company’s Q1 2025 earnings report.
They believe the AI infrastructure growth rate is peaking but still healthy, led by OpenAI’s ChatGPT. CoreWeave has expanded its deal with OpenAI to $15.9 billion and signed a new hyperscaler customer in Q1. Despite CoreWeave’s impressive growth, concerns remain about its high capital expenditures funded by debt.
Sills and Liu increased their price target for CoreWeave from $76 to $185 but downgraded their rating from “buy” to “neutral,” citing the recent rally and suggesting that much of the near-term upside has already been priced in.