CoreWeave (NASDAQ: CRWV), a neocloud provider of AI infrastructure services, went public at $40 per share on March 28, 2025. By June 20, it had reached a record high of $183.58. But as of this writing, it is trading around $82. Let’s see if that return is a good buying opportunity.
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What does CoreWeave do?
CoreWeave was originally Ethereum miner, but it also repurposed its GPUs to remotely process AI tasks after the 2018 crypto market crash. It subsequently increased its data center count from just three centers by the end of 2022 to 49 centers today, and supports that infrastructure with more than 250,000 employees. Nvidia (NASDAQ: NVDA) GPUs.
CoreWeave’s AI-optimized servers can handle advanced AI 35 times faster and 80% cheaper than large cloud infrastructure platforms such as Amazon Web Services (AWS) and Microsoft Azure. Its major clients include Microsoft, Meta (NASDAQ: META), OpenAI, Anthropic, Nvidia, and publicly traded firm Jane Street.
How fast is CoreWeave growing?
CoreWeave’s revenue increases from $16 million in 2022 to $5.1 billion in 2025. Its backlog rose to $99.4 billion by the end of the first quarter of 2026, and analysts expect annual revenue to grow at a three-year CAGR of 99% to $40.3 billion on stock growth of $202 billion. only 3.5 times sales this year.
However, CoreWeave’s net loss also widened from $31 million in 2022 to $1.2 billion in 2025, and analysts expect it to nearly double to $2.2 billion in 2028. It also ended its most recent quarter with total debt of $50.8 billion, giving it a large debt-to-equity ratio of 10.8. If we factor that debt into its $86.3 billion enterprise value, it looks like it’s worth 6.8 times this year’s sales.
Is CoreWeave’s pullback a buying opportunity?
CoreWeave has a lot of potential for growth, but investors aren’t convinced they can expand without breaking the bank. When CoreWeave’s stock hit a record high last summer, investors were expecting the Fed to cut interest rates, making it cheaper for the company to grow.
But today, many analysts expect an interest rate hike in the second half of 2026 if inflation does not cool down. That’s why investors are backing away from for-profit, high-growth companies like CoreWeave. Competition from other neocloud companies and Meta, which recently decided to sell most of its cloud computing capabilities, is increasing that pressure. However, CoreWeave should be attractive again as interest rates stabilize, lock in more customers, and economies of scale come into play. So if you’re looking for an AI stock to hold for a few years instead of a few quarters, CoreWeave’s recent pullback could be a great buying opportunity.
