Valued at a market cap of $37.3 billion, CoreWeave (CRWV) operates a cloud platform that provides scaling, support, and acceleration for generative artificial intelligence. It builds infrastructure to support computer workloads for enterprises. These products include GPU compute, CPU compute, storage services, networking services, and more. 

The tech stock went public in late March and has already delivered 100% returns to shareholders in less than two months. 

Nvidia Is a Major CoreWeave Stock Investor

CoreWeave stock surged close to 50% last week after the company delivered a standout first earnings report as a public company. In Q1, CoreWeave reported 420% revenue growth and raised its full-year guidance above consensus estimates. 

CoreWeave lifted its 2025 revenue outlook to $5 billion, above analyst estimates of $4.6 billion. However, it also increased capital spending projections to $21.5 billion from the expected $18.3 billion.

CoreWeave also disclosed that major supplier Nvidia (NVDA) increased its stake to 7% post-IPO, with holdings now worth approximately $2 billion. The chipmaker's vote of confidence through expanded ownership provided additional validation for investors betting on the AI infrastructure space.

Finally, CoreWeave announced a contract expansion with OpenAI, signing a deal worth up to $4 billion that extends through April 2029, adding to an existing $11.9 billion five-year agreement. The partnership positions CoreWeave as a key cloud computing provider for the ChatGPT maker.

CoreWeave’s outperformance stands out in a tepid IPO market and represents the first pure-play AI infrastructure offering for investors seeking exposure to the generative AI boom. While CoreWeave trades at over seven times projected revenue and faces high capital intensity requirements, its strategic partnerships underscore significant opportunities in AI infrastructure.  

How Did CoreWeave Perform in Q1?

In Q1 2025, CoreWeave reported revenue of nearly $982 million, up 420% from the year-ago period. Moreover, adjusted operating income grew by 550% to $163 million, demonstrating the scalability of its purpose-built cloud platform.

The company's revenue backlog reached $25.9 billion, up 63% year-over-year, bolstered by major contract wins, including an $11.9 billion strategic deal with OpenAI signed in March. 

CEO Mike Intrator emphasized CoreWeave’s unique position serving the world's leading AI companies, highlighting growing demand for inference workloads as models move from training to production. The acquisition of Weights & Biases expanded CoreWeave's customer base to nearly 1,400 AI labs and enterprises, positioning it to capture the expanding enterprise AI market.

CoreWeave plans to more than double its deployed power capacity by year-end, reflecting the massive infrastructure investments required to support its growth trajectory.

Despite concerns about elevated capital spending impacting near-term margins, management expressed confidence in its success-based financing model that aligns capital investments with long-term customer contracts. With 33 purpose-built data centers and industry-leading performance benchmarks, CoreWeave continues to differentiate itself in the rapidly expanding AI infrastructure market.

Is CRWV Stock Overvalued?

Analysts tracking CoreWeave expect revenue to rise from $5 billion in 2025 to $20.3 billion in 2028. While the tech stock is expected to report adjusted earnings per share of $1.20 this year, its EPS is estimated to expand to $3.44 per share in 2028. 

If CRWV stock is priced at 50 times forward earnings, it will trade around $172 in early 2028, indicating upside potential of over 100% from current levels. 

Out of the 17 analysts covering CRWV stock, seven recommend “Strong Buy,” one recommends “Moderate Buy,” eight recommend “Hold," and one recommends “Strong Sell.” The average target price for CRWV stock is $58.41, more than 30% below the current trading price.