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Got $1,000? The 1 AI Software Stock I'd Buy Before It Turns Profitable

newsfeedback@fool.com (James Brumley)
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⚡ Quantum Brief
CoreWeave (CRWV), an AI cloud provider, saw its stock dip amid broader unprofitable AI sector sell-offs, despite 110% YoY revenue growth to $1.57B in Q4 2025. The company serves AI giants like Meta and OpenAI with specialized data center infrastructure, positioning itself as the "essential cloud for AI" despite current losses. CoreWeave lost $1.17B in 2025 due to $3B in infrastructure investments—57% of revenue—to capitalize on projected 27% annual AI data center growth through 2035. Analysts expect profitability within five years as cost efficiencies expand the customer base, with late-stage growth driven by optimized AI affordability. Market recovery may precede profitability as investors anticipate long-term gains from CoreWeave’s early-mover advantage in AI cloud infrastructure.
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By James Brumley – Apr 5, 2026 at 8:30PM ESTKey PointsNot all artificial intelligence hardware or software is going to enjoy the sort of future demand currently expected.There are still not nearly enough AI data centers to meet current or projected demand.This company’s lack of profits right now is largely the result of investments in near-certain industry growth.It's been a tough past few weeks for most artificial intelligence stocks. The lack of profitability that hadn't been a problem has suddenly become one. Any name that isn't seeing solid returns on its artificial intelligence (AI) investments is falling out of favor. Unprofitable artificial intelligence companies' stocks are being downright shellacked. For some of these companies, however, eventual profitability is nearly so certain that their stocks should start performing again well before that corner is turned. And one such name in particular comes to mind. That's CoreWeave (CRWV +4.87%). Image source: Getty Images. What's CoreWeave? If you're not familiar with it, CoreWeave is a cloud computing service provider, building itself from the ground up to serve enterprises that want to utilize and even develop their own AI solutions, but don't want to shoulder the expense of building their own data centers. This description, though, still doesn't do the company justice. Several companies including Meta, Alphabet, OpenAI, and Cloudflare are customers and/or partners, leveraging CoreWeave's superior technology, which the company itself describes as "the essential cloud for AI." ExpandNASDAQ: CRWVCoreWeaveToday's Change(4.87%) $3.82Current Price$82.26Key Data PointsMarket Cap$43BDay's Range$73.81 - $82.4652wk Range$33.52 - $187.00Volume742KAvg Vol26MGross Margin47.77% And rightfully so. It really can do it all, from training (including inference) to agentic AI to rendering. And it can do it all well. That's why the company's top line improved an impressive 110% year over year in the final quarter of 2025, to $1.57 billion. It's coming, and likely sooner than later The fact remains, however, CoreWeave is still in the red, losing $452 million in Q4 2025, and losing $1.17 billion for the entirety of last year on sales of $5.13 billion. Its bottom line is seemingly moving in the wrong direction. Just don't lose perspective on the situation. The company's not profitable right now largely because it's positioning itself for the future. CoreWeave shelled out nearly $3 billion on technology and infrastructure last year -- 57% of revenue -- to be ready for the AI data center opportunity that's going to materialize over the course of the next two to five years. That's an unusually large amount of money, even if it ends up being worth it in the long run It's almost certainly going to be worth it in the long run, however. Analysts expect CoreWeave to finally reach profitability by the end of that five-year span. Then the fireworks will really start. An outlook from Precedence Research suggests the artificial intelligence data center industry is poised to grow at an average annualized pace of more than 27% through 2035,with most of its net dollar growth expected to materialize during the latter half of this timeframe, once all of this tech is fine tuned and operating very cost effectively. Yes, accelerating revenue growth in the distant future seems counterintuitive. The argument holds water, however. This cost efficiency could have the effect of exponentially growing the industry's total number of paying customers, by making AI more affordable to organizations that would like to utilize this technology but are leery of its current prices. More important to interested investors, the market's apt to pick up on this dynamic well before it becomes obvious. Indeed, this bullish potential could firm up in the very near future. Investors as a whole are pretty good at connecting such dots.Read NextApr 4, 2026 •By Parkev Tatevosian, CFACoreWeave Stock Analysis: Buy or Sell This Nvidia-Backed AI Stock?Apr 4, 2026 •By Adam LevyBillionaire Philippe Laffont Sold CoreWeave and Bought This Artificial Intelligence (AI) Stock InsteadApr 3, 2026 •By Johnny RiceCoreWeave Owes $21 Billion.

Its Customers Are Its Biggest Risk.Apr 2, 2026 •By Johnny RiceWhere Will CoreWeave Stock Be in 1 Year?Mar 31, 2026 •By Rick MunarrizCathie Wood Goes Bargain Hunting: 3 Stocks She Just BoughtMar 31, 2026 •By Justin PopeCoreWeave Stock: Beware of the Threat LurkingAbout the AuthorJames Brumley is a contributing Motley Fool stock market analyst covering consumer staples and consumer discretionary stocks. James is a former licensed stockbroker with Charles Schwab, and a registered investment adviser. He holds a bachelor’s degree in business management with a specialization in finance from Transylvania University.TMFjbrumleyX@jbrumleyStocks MentionedCoreWeaveNASDAQ: CRWV$82.26(+4.87%)+$3.82*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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