To The Moon

🌟🌟🌟Coreweave $CoreWeave, Inc.(CRWV)$ is making a strong case for AI dominance especially with its high performance computing (HPC) infrastructure and backing from Nvidia $NVIDIA(NVDA)$ .  Its focus on GPU accelerated cloud computing positions it as a major player competing with giants like Amazon Web Services (AWS) and Microsoft Azure.   Coreweave's USD 7 billion lease deal with Applied Digital$APPLIED DIGITAL CORP(APLD)$  strengthens its position in AI workloads. 

Why Does Nvidia Backs Coreweave and Applied Digital? 

Nvidia backs Coreweave and Applied Digital because both companies play a crucial role in AI infrastructure, particularly in HPC and data center expansion. 

Coreweave's AI Cloud - Coreweave specialises in GPU accelerated cloud computing which relies heavily on Nvidia's chips.  By supporting Coreweave, Nvidia ensures its GPUs are widely used in AI workloads. 

Applied Digital 's Data Centers -  Applied Digital provides AI data center capacity, leasing 250 megawatts to Coreweave.  Nvidia benefits from this partnership because it enables more AI computing power, increasing its demand for its chips. 

Strategic Investment - Nvidia holds 7.7 million shares of Applied Digital and 24.2 million shares of Coreweave.  This investment strengthens Nvidia's position in the AI infrastructure. 

AI Growth Potential - The USD 7 billion lease agreement between Coreweave and Applied Digital signals long term AI demand, which benefits Nvidia's business model. 

Is Coreweave A Buy? 

Coreweave's share price has been on a tear.  It is currently up 8.3% on Wednesday and 32% in the past 5 days.  It has skyrocketed a massive 307% year todate.  Coreweave is now trading at USD 163.10, up from its IPO price of USD 40 in March 2025.

In May Coreweave delivered its first quarter results with revenue up 420% year over year to USD 981.60 million.  This is far beyond Analysts expectations of USD 853 million.  

The key highlight of the 1st quarter report was a 5 year USD 11.9 billion contract with OpenAI that solidifies Coreweave's status as the go to infrastructure provider for leading AI companies. 

What makes Coreweave's growth outstanding is its massive USD 25.9 billion revenue backlog which includes USD 14.7 billion in remaining performance obligations. 

Coreweave EBITDA surged to USD 606 million, almost 6 times greater than its previous year.   With 420 megawatts powering its data centers across the US and Europe, Coreweave has the physical infrastructure to support years of double digit percentage growth. 

Coreweave's competitive advantage stems from its purpose built approach.  Its facilities are specially designed for GPU intensive computing and to deliver superior performance and cost efficiency as AI models grow more complex and computationally demanding.   In contrast traditional cloud providers like AWS or Microsoft Azure have to retrofit existing data centers. 

However Coreweave posted a net loss of USD 314.6 million in Q1 25 compared to USD 129.2 million loss in the previous year.  This was due to interest expenses that rose 549% year over year to USD 264 million.   These huge financing costs reflect the capital intensive nature of building cutting edge data centers. 

Despite all this, Coreweave shares is a compelling Buy  for growth investors who love the huge growth potential of Coreweave. 

Analysts are projecting that Coreweave will turn profitable in 2026 while maintaining triple digit growth rates. 

Concluding Thoughts 

With AI still in its nascent stage, Coreweave could very well be the new AI King in the future.  It is a high risk high reward kind of stock with lots of exponential growth ahead. 

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