CoreWeave: This Is What Real AI Scale Looks Like
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Cyn Research570 FollowersFollow5ShareSavePlay(10min)CommentsSummaryCoreWeave, Inc. has faced a sharp sell-off due to execution delays, high-interest debt, and revised FY25 guidance.Despite near-term headwinds, CRWV remains a critical AI infrastructure provider with a substantial revenue backlog and trades at a deep discount to peers.Current valuations appear overly pessimistic, failing to account for potential backlog expansion and future contract wins.I recommend CRWV as a speculative bet on mean reversion, capped at 5% allocation, given ongoing risks and volatility. Andrii Dodonov/iStock via Getty Images Introduction AI data center stocks, of which the most prominent are CoreWeave, Inc. (CRWV), Nebius Group N.V. (NBIS), and IREN Limited (IREN), have come under a lot of pressureThis article was written byCyn Research570 FollowersFollowHi! I'm a passionate investor who has been researching publically traded companies for over 6 years. My primary focus is on identifying great businesses at reasonable prices and holding them for the long term but I also dive into trend following strategies from time to time. While I have a slight bias toward technology companies, I maintain a broad perspective, including opportunities in crypto. I take a global approach to investing, occasionally seeking value beyond the U.S. market. Thanks for reading!Analyst’s Disclosure:I/we have a beneficial long position in the shares of CRWV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You