What They Do
CoreWeave provides specialized cloud computing infrastructure optimized for AI workloads, offering GPU-powered compute, storage, and networking services. They serve AI companies, enterprises, and developers who need massive computational power for training and running AI models. The company generates revenue through reserved compute instances, on-demand services, and their proprietary cloud stack technology.
Investment Thesis
**Explosive AI Infrastructure Demand**: Revenue surged 168% YoY to $5.1B in 2025, with $66.8B in contracted backlog (up from ~$16B in 2024) providing exceptional revenue visibility**Massive Scale-Up Opportunity**: Guiding for $12-13B revenue in 2026 (~140% growth) and targeting $30B+ annualized run rate by end of 2027, positioning for continued hypergrowth**Strategic NVIDIA Partnership**: $2B investment from NVIDIA validates CoreWeave's technology and creates distribution opportunities across NVIDIA's broader ecosystemKey Risks
**Capital Intensity**: $30-35B CapEx planned for 2026 (more than double 2025's $14.9B) creates significant financing and execution risks**Profitability Timeline**: Currently unprofitable with 2026 operating margins starting in low single digits, requiring flawless execution to reach 25-30% long-term margin targetsGrowth Story
CoreWeave became the fastest cloud company in history to reach $5B in annual revenue, driven by explosive AI compute demand and customer diversification (nearly 150% growth in $1M+ customers). The company is expanding from 850+ megawatts across 43 data centers to 3.1+ gigawatts of contracted capacity, targeting 5+ additional gigawatts by 2030 to capture the transformative AI infrastructure buildout.
Profitability Profile
Strong gross margins of 71.7% reflect pricing power in scarce GPU capacity, but the company is investing heavily for growth with operating margins expected to ramp from low single digits to low double digits through 2026. Mature contracts generate ~70% EBITDA margins in the mid-20s contribution margins, indicating strong unit economics once infrastructure investments stabilize.
Competitive Position
CoreWeave differentiates through its specialized AI-optimized cloud stack and deep NVIDIA partnership, competing against hyperscalers like AWS, Google Cloud, and Microsoft Azure in the AI infrastructure space. Their first-to-market access to NVIDIA's next-generation Rubin GPU platform and proprietary technology stack creates competitive moats in the rapidly expanding AI compute market.
Recent Momentum
Q4 2025 delivered strong execution with revenue beating by 1.5% and $1.6B quarterly revenue (up 110% YoY), while adding 2x more reserved instance customers than any prior quarter including major enterprise wins. The $2B NVIDIA investment and expanded commercial relationship validates CoreWeave's technology and accelerates their path to broader market penetration.
What Wall Street Thinks
Analysts are bullish on CoreWeave's positioning in the AI infrastructure boom, with 2026-2027 revenue estimates of $12.5B and $23.3B respectively reflecting confidence in the growth trajectory. However, concerns remain about the company's path to profitability with negative EPS expected through 2027, requiring investors to focus on the long-term margin expansion story.
The Bottom Line
CoreWeave is the pure-play leader in AI cloud infrastructure with exceptional growth visibility through $66.8B in contracted backlog, but investors must believe in the company's ability to execute a massive capital deployment while transitioning to profitability in a rapidly evolving market.
