Latest news with #CRWV
Yahoo
4 days ago
- Business
- Yahoo
Jim Cramer on CoreWeave, Inc. (CRWV): 'I Got to Check My Enthusiasm'
We recently published a list of . In this article, we are going to take a look at where CoreWeave, Inc. (NASDAQ:CRWV) stands against other stocks that Jim Cramer discusses. A caller inquired if CoreWeave, Inc. (NASDAQ:CRWV) stock is still a buy. In response, Cramer said: 'No… we can't buy it here. I said that this morning at our morning meeting, that I do for club members, and I said… you know, I think the world of the stock. I recommended it at 40. That looks like a pretty darn good call. Ben Stoto, who's my chief scientist, and I, we got together and said this one is for real and you should buy it, but up here, up 210% since its IPO, I got to check my enthusiasm. Notice I didn't say curb, check.' A team of software engineers at desks working on code for a cutting-edge cloud computing solution. CoreWeave (NASDAQ:CRWV) provides a cloud platform designed to power enterprise compute workloads, especially for generative AI applications. The company offers high-performance computing resources, infrastructure tools, and services for tasks like AI training, rendering, and model optimization. Overall, CRWV ranks 9th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRWV and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
5 days ago
- Business
- Yahoo
Why CoreWeave, Inc. (CRWV) Went Up On Tuesday
We recently published a list of . In this article, we are going to take a look at where CoreWeave, Inc. (NASDAQ:CRWV) stands against other best-performing stocks. CoreWeave Inc. surged by 20.66 percent on Tuesday to end at $123.97 apiece as investors cheered the appointment of a new executive to handle government affairs. According to the company, it appointed Carl Holshouser as Vice President for Government Affairs, who has two decades of track record in government and public affairs. In his new role, he is expected to spearhead CoreWeave, Inc.'s (NASDAQ:CRWV) efforts in shaping public policies at the federal and state levels. Holshouser also boasts achievements in advocacy on artificial intelligence, privacy, trade, cybersecurity, and semiconductors, among others. Additionally, CoreWeave, Inc. (NASDAQ:CRWV) appeared to have benefited from news that a clutch of Nvidia suppliers have faced technical challenges that delayed shipments of its AI data center racks, which in turn, negatively affected production of its Blackwell AI servers. In contrast, CoreWeave, Inc. (NASDAQ:CRWV) hosts such servers in its platform. Overall, CRWV ranks 2nd on our list of best-performing stocks. While we acknowledge the potential of CRWV, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRWV and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
CoreWeave vs. Nebius: Which AI Infrastructure Stock Is the Better Buy?
CoreWeave, Inc. CRWV and Nebius Group N.V. NBIS are emerging AI-focused cloud infrastructure providers positioning themselves as agile alternatives to traditional hyperscalers like Amazon Web Services and Azure, aiming to capitalize on the growing demand for AI cloud solutions. The rapid proliferation of AI is transforming the entire tech scene, and AI infrastructure has become a high-stakes battleground for tech companies. Per an IDC report, spending on AI infrastructure is expected to top $200 billion by 2028. This uptrend in spending benefits both CoreWeave and Nebius, but not equally. So, if an investor wants to make a smart buy in the AI infrastructure space, which stock stands out? Let us delve a little deeper into the companies' strengths and weaknesses to see which is the better stock pick? CoreWeave 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. In the last reported quarter, revenues of $981.6 million beat the Zacks Consensus Estimate by 15.2% and jumped 420% year over year. In 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. It recently 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. Apart from scaling capacity and getting adequate financing for infrastructure, CRWV is also expanding its go-to-market capabilities. Moreover, the buyout of the Weights and Biases acquisition has added 1,400 AI labs and enterprises as clients for CoreWeave. CoreWeave now has a data center network with 33 data centers across the United States and Europe, supported by 420 megawatts of active power. CRWV also works with NVIDIA Corporation NVDA to implement the latter's GPU technologies at scale. CoreWeave was one of the first cloud providers to deliver NVIDIA H100, H200, and GH200 clusters into production for AI workloads. The company's cloud services are also optimized for NVIDIA GB200 NVL72 rack-scale systems. Nonetheless, management's commentary surrounding higher capital expenditures and high interest expenses is likely to have unnerved investors. CRWV expects capex to be between $20 billion and $23 billion for 2025 due to accelerated investment in the platform to meet customer demand. Higher capex can be a concern if revenue does not keep up the required pace to sustain such high capital intensity. High interest expenses could weigh on profitability. In the first quarter, interest expense came in at $264 million, topping expectations. The company now guides interest expense to remain elevated, at $260-$300 million in the current quarter. CoreWeave's 77% of total revenues in 2024 came from the top two customers. This intense customer concentration is a major risk, especially if the client migrates, the revenue impact could be material. Apart from this evolving trade policy, macro uncertainty and volatility remain additional headwinds. Nebius posted 385% year-over-year revenue growth in the first quarter of 2025, driven by accelerating demand for its AI infrastructure services. NBIS is focusing on technical enhancements that increase reliability and reduce downtime to boost customer retention. In the first quarter, Nebius significantly upgraded its AI cloud infrastructure through improvements to its Slurm-based cluster. These enhancements included automatic recovery for failed nodes and proactive system health checks designed to identify issues before they impact jobs. This directly lowers downtime and boosts capacity availability. According to the company, these changes led to an estimated 5% improvement in the availability of nodes for commercial use. Nebius is making substantial investments in improving its object storage capabilities, and the upgraded storage system ensures that big data sets can be easily accessed and saved quickly during model training, directly lowering time-to-result for end users. NBIS successfully graduated multiple platform services like MLflow and JupyterLab Notebook from beta to general availability. Nebius expanded integrations with external AI platforms like Metaflow, D Stack and SkyPilot, enabling customers to migrate tools with nominal friction. Nebius is focusing on building a global footprint, with capacity in the United States, Europe, and the Middle East. It added three new regions, including a strategic data center in Israel, in the last reported quarter. Like CoreWeave, NBIS' partnership with NVDA (also an investor in the company) is another plus. Nebius will be one of the first AI cloud infrastructure platform to offer the NVIDIA Blackwell Ultra AI Factory Platform and become a launch partner for NVIDIA Dynamo. Nonetheless, the intense competition from behemoths remains a concern, along with profitability issues. Despite its exceptional top-line growth, NBIS remains unprofitable, with management reaffirming that adjusted EBITDA will be negative for the full year 2025. Though it added that adjusted EBITDA will turn positive at 'some point in the second half of 2025.' Like CoreWeave, NBIS has also raised its 2025 capital expenditure forecast to approximately $2 billion from the previous estimate of $1.5 billion, primarily due to some planned fourth-quarter spending shifting into early first quarter. In the past month, CRWV has skyrocketed 189.6% while NBIS has surged 66.9%. Image Source: Zacks Investment Research Currently, the stocks carry a Zacks Rank #3 (Hold) each. While both CoreWeave and Nebius are aggressively scaling to capture the surging demand for AI infrastructure, NBIS appears to be the more compelling investment opportunity at this stage. Despite its ongoing investments and negative EBITDA in the near term, NBIS's full-stack AI cloud platform and expanding global footprint position it well for growth. NBIS is relatively better placed than CRWV, although both appear to be on a level playing field in terms of Zacks Rank. Consequently, NBIS seems to be a better pick at the moment. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
CoreWeave (CRWV) Stock Jumps 157%—But Analyst Warns the Rally Looks Risky
We recently published a list of . In this article, we are going to take a look at where CoreWeave, Inc. (NASDAQ:CRWV) stands against other AI stocks gaining Wall Street's attention. On May 27, MoffettNathanson raised the firm's price target on CoreWeave, Inc. (NASDAQ:CRWV) to $56 from $43 and kept a 'Neutral' rating on the shares. CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes. The analyst noted that CoreWeave shares are up 157% since the IPO at $40, but that this rally doesn't align with any significant changes in the company's foundational aspects. The firm's focus is 'on fundamentals, not trading dynamics.' It further stated how 'little has happened on the ground to prompt such a jump.' It is true that the demand backdrop for AI infrastructure has been 'extremely strong,' but that was the case previously, and the firm is 'not inclined to simply chase the shares higher.' The firm is cautious on CoreWeave and that 'attempting to trade this move appears exceptionally dangerous.' A financial professional utilizing a cloud-based software application. For investors, this is what it means: 'Our bias is now skewed to the downside, as opposed to being quite balanced in our initiation, but attempting to trade this move appears exceptionally dangerous,' Del Deo said in a Monday note to clients. The firm has noted that the risks of moving to a sell call would 'remain far higher than we feel comfortable accepting.' Overall, CRWV ranks 8th on our list of AI stocks gaining Wall Street's attention. While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRWV and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
6 days ago
- Business
- Globe and Mail
CoreWeave Sees Solid Demand: Is CRWV Stock a Buy, Sell, or Hold?
CoreWeave (CRWV) has been on a tear. The artificial intelligence infrastructure company has seen its stock price skyrocket by 174% over the past month. Behind this explosive growth is surging demand for CoreWeave's cloud platform tailored for the booming AI sector. CoreWeave's ability to deliver high-performance computing infrastructure specifically designed for AI workloads is the primary catalyst for growth. The company operates a network of custom-built data centers across the U.S. and Europe, offering top-tier GPUs, CPUs, networking systems, and storage, which are essential tools for AI developers and enterprises. It also provides proprietary software and services, making its platform a comprehensive solution for next-gen AI applications. While CoreWeave is poised to benefit from AI-driven demand, the recent rally in its share price raises concerns. With its share price appreciating significantly in value, Can CoreWeave continue to deliver, or is the stock overheating? Strengths Behind CoreWeave's Business One of the core strengths of CoreWeave's business model is its long-term, take-or-pay contracts. Customers typically commit to multi-year agreements, which usually span two to five years, thereby creating reliable and recurring revenue streams. This model provides the company with visibility into future revenues, and the latest backlog numbers suggest solid growth ahead. CoreWeave's first earnings report as a public company was nothing short of impressive. In Q1, the company reported $982 million in revenue, representing a 420% year-over-year increase, with adjusted operating income surging 550% to $163 million. These eye-popping figures show significant demand for its platform. Furthermore, its revenue backlog, essentially the value of contracts yet to be fulfilled, has increased to $25.9 billion, a 63% year-over-year rise. As the demand for AI continues to surge, the need for robust and scalable infrastructure to support it will also increase. CoreWeave, with its leading AI infrastructure, is well-positioned to capitalize on this demand. CoreWeave is quickly building a substantial footprint, now operating 33 data centers across the U.S. and Europe. This extensive network positions the company to meet the infrastructure needs of AI-driven enterprises effectively. Adding to its growth, CoreWeave recently inked a deal with OpenAI valued at up to $11.9 billion. It also signed a $4 billion expansion agreement with a major AI enterprise. These deals validate that CoreWeave is well-positioned to benefit from the AI's infrastructure boom. Moreover, CoreWeave recently completed its acquisition of Weights & Biases, a widely used platform among AI developers. This acquisition adds a software layer to CoreWeave's offering, enhancing its appeal to developers and deepening customer integration. The company has also maintained its technological edge, becoming one of the first to deploy Nvidia's (NVDA) new GB200 Grace Blackwell chips at scale. Outlook Remains Strong Looking ahead, for Q2, CoreWeave expects revenue to be between $1.06 billion and $1.1 billion, marking steady growth from the previous quarter. CRWV's adjusted operating income is projected to be between $140 million and $170 million. For the full year 2025, CoreWeave anticipates revenue of $4.9 billion to $5.1 billion and adjusted operating income of up to $830 million. Capital expenditures are expected to reach as high as $23 billion, reflecting the company's aggressive investment to keep up with red-hot demand. The Bottom Line: Is CRWV Stock a Buy, Sell, or Hold? There's no denying that CRWV stock has momentum on its side. Its rapid rise reflects investor enthusiasm for companies poised to power the next generation of AI. However, such explosive gains often come with a dose of volatility. Furthermore, a shaky global trade environment poses challenges, which is why analysts are being cautious. Currently, Wall Street gives the stock a 'Moderate Buy' rating, which is a sign of cautious optimism. While Wall Street is cautiously optimistic, CRWV has strong fundamentals working in its favor. The company's long-term contract model helps ensure steady revenue, and its unique financing approach allows it to align spending with incoming cash flow, a big plus in an industry where upfront investments can be massive. CoreWeave is seeing rising demand and is aggressively expanding its infrastructure to meet it. Further, its growing backlog suggests strong growth ahead. The stock may be due for some cooling after its recent run-up. However, with strong demand, a solid business model, and a smart growth strategy, CoreWeave could be a rewarding play in the long term.
