TLDR
- CoreWeave revenue jumped 276% to $2.19 billion in H1 2025 but stock fell 33% in August
- Company operates 33 data centers serving OpenAI, Meta, and IBM with specialized AI GPU services
- Net losses widened to $661 million while carrying $22.42 billion in total liabilities
- Nvidia holds $2.2 billion stake making CoreWeave its largest single stock investment
- Wall Street analysts split with median price target of $110 versus current $93.86 price
CoreWeave delivered explosive revenue growth in the first half of 2025, posting $2.19 billion compared to the previous year’s $798 million. The 276% year-over-year increase reflects the company’s rapid expansion in AI infrastructure services.
The AI-focused data center operator has scaled from three facilities in 2022 to 33 data centers across the U.S. and Europe. This expansion strategy targets the growing demand for GPU-powered AI processing from major tech companies.
CoreWeave’s specialized approach differentiates it from traditional cloud providers. The company claims its GPU-focused infrastructure processes AI tasks 35 times faster and 80% cheaper than conventional platforms.
Major technology companies drive CoreWeave’s customer base. OpenAI relies on the platform for ChatGPT infrastructure, while Meta and IBM use the services for machine learning workloads.
Stock Performance Disappoints Despite Revenue Surge
CoreWeave stock experienced a sharp 33% decline in August following Q2 earnings release. The selloff occurred despite the company’s impressive revenue performance, highlighting investor concerns about profitability.
Shares currently trade at $93.86, down from a 52-week high of $187.00. The stock’s volatility reflects broader market skepticism about high-growth AI companies with unproven profit models.
Recent lock-up expiry allowed early investors and insiders to sell shares. Company insiders completed 78 sales versus just three purchases over six months, with CEO Jack Cogen selling over 4.2 million shares worth $382 million.
Profitability Challenges Mount
CoreWeave’s growth strategy comes with substantial costs. Net losses expanded from $31 million in 2022 to $863 million in 2024. First-half 2025 losses reached $661 million, with analysts projecting $1.1 billion full-year losses.
The company funds expansion primarily through debt, causing interest payments to surge from $28 million in 2022 to $784 million in 2024. Total liabilities of $22.42 billion dwarf the company’s $1.15 billion cash position.
Operating expenses continue rising as CoreWeave opens new facilities and purchases Nvidia GPUs. Energy costs for powering data centers add additional financial pressure.
Nvidia’s investment provides both validation and financial support. The chip giant invested $350 million total and now holds 24.28 million shares worth approximately $2.2 billion, representing its largest single stock investment.
The planned $9 billion Core Scientific acquisition will be funded entirely through new share issuance, potentially creating further dilution concerns for existing shareholders.
Wall Street analysts remain divided on CoreWeave’s prospects. Eight firms rate the stock a buy while two recommend selling, with price targets ranging from $65 to $200.
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