Latest news with #CoreWeave
Yahoo
17 hours 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
a day ago
- Business
- Yahoo
Is CoreWeave Stock Still a Buy After Its 200% Rally?
CoreWeave shares have soared 200% year to date, defying the broader market's weakness. The artificial intelligence infrastructure specialist posted jaw-dropping 420% revenue growth in the first quarter. Wall Street analysts expect its revenue to more than double in 2026, and profitability is finally in sight. 10 stocks we like better than CoreWeave › Growth stocks have been all over the map this year. Despite bullish projections from analysts heading into 2025, President Donald Trump's global trade reset has weighed on markets: After several ups and downs, the benchmark S&P 500 is essentially flat year to date at the time of this writing. However, against that backdrop, some stocks have delivered incredible gains. CoreWeave (NASDAQ: CRWV), which is up 200% year to date, is a prime example. The artificial intelligence (AI) infrastructure powerhouse has defied gravity amid the market's turbulence, and appears primed for even more gains in the years ahead. CoreWeave is a specialized cloud computing provider that operates GPU-accelerated data centers designed specifically for AI workloads. With more than 33 facilities across the U.S. and Europe, it provides the specific variety of computational horsepower needed to power a host of AI-related needs, from training large language models to supporting generative AI applications. Unlike traditional cloud providers that are now retrofitting existing infrastructure to meet the new demands of their customers, CoreWeave builds its data centers from the ground up for AI computing. Earlier this month, the company delivered blockbuster first-quarter results that sent Wall Street analysts scrambling to raise their price targets on the stock. Revenue rose 420% year over year to $981.6 million, crushing the consensus expectation of $853 million. The quarter's highlight was a five-year, $11.9 billion contract with OpenAI that cemented CoreWeave's status as the go-to infrastructure provider for leading AI companies. What makes CoreWeave's growth particularly compelling is its massive $25.9 billion revenue backlog, which includes $14.7 billion in remaining performance obligations. Further showcasing the company's hypergrowth, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to $606 million, nearly six times greater than in the prior-year period. With 420 megawatts (MW) powering its data centers across the U.S. and Europe, the company has the physical infrastructure to support years of double-digit percentage growth. CoreWeave's ability to secure long-term contracts with blue chip AI customers provides it with exceptional revenue visibility. This enables the company to make infrastructure investments backed by firm customer commitments, reducing execution risk. In Q1, CoreWeave added a substantial amount of contracted power, including a 260 MW expansion with Galaxy Digital. Additional partnerships, such as with Bulk Infrastructure in Europe and Flexential in Q2, underscore the company's accelerating scale. CoreWeave's competitive advantage stems from its purpose-built approach. Traditional cloud providers like Amazon Web Services or Microsoft Azure retrofit existing data centers for AI workloads. CoreWeave's facilities are designed specifically for GPU-intensive computing, and deliver superior performance and cost efficiency as AI models grow more complex and computationally demanding. That's a significant competitive advantage in a rapidly growing market. While CoreWeave's growth has been mind-bending, investors should still consider the significant risks it faces. The company posted a net loss of $314.6 million in Q1, widening from $129.2 million a year earlier, an increase attributable to interest expenses that rose 549% year over year to $264 million. These financing costs reflect the capital-intensive nature of building cutting-edge data centers. Management is guiding for capital expenditures of $20 billion to $23 billion in 2025 alone. To put this in perspective, CoreWeave is spending roughly five times its annual revenue on its infrastructure build-out. Customer concentration presents another risk -- Microsoft alone accounted for 62% of 2024 revenue. While the OpenAI deal will provide some diversification, CoreWeave's dependence on its few biggest clients remains a concern. Additionally, hyperscalers could leverage their massive balance sheets to compete more aggressively with it in the AI infrastructure space. Even after their eye-popping surge this year, CoreWeave shares still look like a compelling option for growth investors who can stomach volatility. Analysts project the company will turn profitable in 2026 while maintaining triple-digit percentage growth rates. The stock offers one of the purest plays available on AI infrastructure demand. For investors who believe we're still in the early innings of the AI revolution, CoreWeave stock remains a buy. Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Is CoreWeave Stock Still a Buy After Its 200% Rally? was originally published by The Motley Fool 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
a day ago
- Business
- Yahoo
Nvidia Partner CoreWeave Set To Hack Into Amazon, Google Kingdoms; Investors Pour In As Stock Rockets 227%
Nvidia-backed CoreWeave holds first place in the IBD 50 list of growth stocks. CoreWeave rents out Nvidia's AI chips to hyperscalers.
Yahoo
a day ago
- Business
- Yahoo
Generative AI Sales May Soar 600% by 2028: 2 Brilliant AI Stocks to Buy Now (Hint: Not Palantir)
Morgan Stanley estimates generative artificial intelligence (AI) revenue across software and internet companies will increase more than 600% between 2025 and 2028. AppLovin specializes in video game and e-commerce advertising, and the company has differentiated itself with a superior AI-powered targeting engine. CoreWeave is a leading provider of cloud AI infrastructure services, and the company just reported 420% sales growth in the first quarter. 10 stocks we like better than AppLovin › Following the introduction of ChatGPT, billionaire Bill Gates wrote, "Artificial intelligence (AI) is as revolutionary as mobile phones and the internet." That implies substantial wealth creation in the coming years. Morgan Stanley estimates generative AI revenue across software and internet companies will increase more than 600% to approach $1.1 trillion by 2028. Palantir Technologies probably comes to mind for many readers, given how well the stock has performed. But AppLovin (NASDAQ: APP) and CoreWeave (NASDAQ: CRWV) are also well positioned to benefit. AppLovin designs adtech software that lets developers market and monetize their applications across mobile and connected TV campaigns. Traditionally, most advertising on its platform has focused on video games, but the company is expanding on its primary market with a new e-commerce advertising product. AppLovin has differentiated itself with artificial intelligence (AI). Morgan Stanley says the company has a "best-in-class" recommendation engine called Axon that targets advertising campaigns with sophisticated machine learning models. Additionally, its in-house creative agency, SparkLabs, use generative AI to create personalized ad content for clients. AppLovin reported fantastic first-quarter financial results. Total revenue increased 40% to $1.4 billion, as strong sales growth in the advertising segment offset a decline in the mobile games segment. Meanwhile, generally accepted accounting principles (GAAP) earnings climbed 149% to $1.67 per diluted share. And management guided for 69% advertising sales growth in the second quarter. Importantly, AppLovin recently sold its mobile games portfolio for $800 million. That decision benefits the company in two ways. First, sales in that segment have been declining, so the divestiture eliminates the weakest part of the business. Second, it allows AppLovin to focus on its core adtech software business, including its nascent e-commerce product. Wall Street estimates AppLovin's earnings will increase at 43% annually through 2026. That makes the current valuation of 64 times earnings look fair, especially when the company beat the consensus estimate by an average of 33% in the last six quarters. Risk-tolerant investors should feel comfortable buying a small position today. CoreWeave provides cloud infrastructure and software services. The company runs the leading GPU cloud, meaning data center infrastructure that's purpose-built to support artificial intelligence (AI) applications and other complex workloads that need to be accelerated with graphics processing units (GPUs). The company uses Nvidia GPUs exclusively. CoreWeave has differentiated itself in a few important ways. First, it has regularly achieved strong results at the MLPerf benchmarks, objective tests that evaluate the performance of AI systems across training and inference workloads. Second, the company is often among the first cloud providers to deploy new Nvidia technology due to its close relationship with the chipmaker. "CoreWeave is built to move faster -- and time and time again, we've proven it by being first to operationalize the most advanced systems at scale," CEO Michael Intrator said earlier this year after the company launched Nvidia GB200 NVL72 systems ahead of its peers. That edge, coupled with expertise in managing large GPU clusters, explains why CoreWeave is growing like wildfire. First-quarter revenue soared 420% to $981 million, and adjusted operating income (which excludes stock-based compensation and interest payments) rose 550% to $162 million. However, CoreWeave has $7.8 billion in long-term debt and lease obligations. Interest on that debt consumed about one-quarter of revenue, which led the company to report a non-GAAP loss of $150 million. CoreWeave is not yet profitable, so it's difficult to value the stock. Having said that, the current price-to-sales ratio is 21. That is neither cheap nor outrageously expensive for a company that just reported triple-digit sales growth, especially when that sales growth came with a 73% gross margin. Patient investors comfortable with volatility should buy a small position. Before you buy stock in AppLovin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AppLovin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Trevor Jennewine has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends AppLovin, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy. Generative AI Sales May Soar 600% by 2028: 2 Brilliant AI Stocks to Buy Now (Hint: Not Palantir) was originally published by The Motley Fool 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
CNA
2 days ago
- Business
- CNA
Dell raises annual profit forecast on strong AI server demand
Dell raised its annual profit forecast on Thursday, signaling growing demand for its AI-powered servers that are equipped with Nvidia's powerful chips. Shares of the company, whose servers are used by customers such as Elon Musk's AI startup xAI and CoreWeave, rose 2 per cent in extended trading. Dell and Super Micro Computer have benefited from growing demand for such servers, but the high cost of producing them and tough competition have pressured margins. "We generated $12.1 billion in AI orders this quarter alone, surpassing the entirety of shipments in all of fiscal 2025 and leaving us with $14.4 billion in backlog," Dell's Chief Operating Officer Jeff Clarke said. The results follow the U.S. Department of Energy's announcement on Thursday that it would launch a new supercomputer, named Doudna, which will use Dell and Nvidia's advanced technology to perform complex computing tasks. Dell now expects annual adjusted profit to be $9.40 per share, compared with its prior forecast of $9.30 per share. The company also reiterated its annual revenue outlook. It forecast second-quarter revenue to be between $28.5 billion and $29.5 billion, above analysts' average estimate of $25.05 billion, according to data compiled by LSEG. Dell's adjusted profit forecast for the second quarter of $2.25 per share was also above estimates of $2.09. The company's first-quarter revenue of $23.38 billion beat expectations of $23.14 billion, while its adjusted profit of $1.55 per share missed estimates of $1.69. "We note potential near-term margin pressure from competitive pricing, tariffs, and geographic mix shifts," Shreya Gheewala, equity analyst at CFRA Research, said. Revenue from Dell's infrastructure solutions group, which includes storage, software and server offerings, rose 12 per cent, while revenue from its client solutions group, that houses its PC business, rose 5 per cent.
