CoreWeave Guides $4.9-$5.1B in 2025 Revenues: What's Fueling This?
CoreWeave, Inc. CRWV has guided 2025 revenues to be in the range of $4.9-$5.1 billion, fueled by surging AI-infrastructure demand. CRWV is an AI-focused hyperscaler company and its cloud platform has been developed to scale, support and accelerate GenAI. Businesses have been increasing spending on AI inference/fine-tuning, AI workload monitoring and training infrastructure, including training compute, AI servers, AI storage, cloud workloads and networking. This increasing demand for AI-cloud platforms, including integrated software and infrastructure, bodes well for CRWV.
Strategic deal wins like the OpenAI contract (which has a value up to $11.9 billion) and a $4 billion expansion with a major AI-enterprise client are driving forward revenue visibility. The company also unveiled the next generation of its CoreWeave AI object storage. This is purpose-built for training and inference, offering a production-ready, scalable solution integrated with Kubernetes.
CoreWeave now boasts a growing network with 33 data centers across the United States and Europe, supported by 420 megawatts of active power. Moreover, the buyout of the Weights and Biases has added 1,400 AI labs and enterprises as clients for CoreWeave. Apart from scaling capacity and getting adequate financing for infrastructure, CRWV is also expanding its go-to-market capabilities.
With a success-based capex model and expanding global reach, CoreWeave appears well-positioned to capture a significant share of the AI-infrastructure market. On the first quarter earnings call, CRWV highlighted that AI is forecasted to have a global economic impact of $20 trillion by 2030, while the total addressable market is anticipated to increase to $400 billion by 2028.
This uptrend in spending will benefit other players in this space, including smaller players like Nebius Group N.V. NBIS and tech behemoths like Microsoft Corporation MSFT.
Taking a Look at Revenue Outlook for NBIS & MSFT
Driven by accelerating demand for its AI-infrastructure services, Nebius remains confident in achieving the full-year annualized run-rate revenue ('ARR') guidance of $750 million to $1 billion. For 2025, the company also reaffirmed its overall revenue guidance of $500 million to $700 million. In the first quarter of 2025, ARR saw a 700% jump, highlighting a structurally expanding revenue base. ARR for April was $310, which provides a strong start for the second quarter. To gain a larger share of the AI-cloud compute market, NBIS is focusing on technical enhancements that increase reliability and reduce downtime to boost customer retention.
Microsoft projects revenues between $28.75 billion and $29.05 billion for the fourth quarter of fiscal 2025 for Intelligent Cloud, while for Azure, it expects revenue growth at constant currency between 34% and 35%. In Enterprise Services, revenues are forecasted to grow in mid-to-high single digits. The rising adoption of enterprise capabilities of Azure OpenAI and Copilots across Microsoft 365, Dynamics 365 and Power Platform bodes well.
With Azure AI, Microsoft is establishing itself as the application server for the AI era, offering access to a broad range of models tailored to customers' specific needs around cost, latency and design. The number of Azure AI customers and average spending continue to grow.
CRWV's Price Performance
Shares of CoreWeave have gained 120.8% year to date compared with the Internet Software industry's growth of 4.1%.
CRWV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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