In case you followed the stocks of AI, chances are that you heard about CoreWeave (CRWV). It is a relative newcomer to the general market, but already it is generating some buzz-high growth in revenues, a client list that is filled with household names and a valuation that is… shall we say, quite rogue-like?
The question is then: Is Coreweave stock undervalued- or is it only beginning? We will go through this one by one.
First, What Even Is Coreweave?
CoreWeave is no ordinary technology firm. It initially began with crypto mining but took a sharp turn to AI-centric cloud infrastructure. In essence, it constructs the type of high-powered data centers that AI models (as on the computer you are reading this on) require to execute.
Its biggest clients? Microsoft, Meta, OpenAI, and others. And they are not merely dipping their toes in–OpenAI entered into agreement of 11.2 billion. Microsoft? They contribute approximately 62 percent of the revenue of CoreWeave.
Let’s Talk Stock Price
CoreWeave stock has increased more than four times since the time it went public in March 2025. It currently trades at approximately at a price of approximately at 102 per share compared to its IPO of 40
But… is that justified?
Quick Valuation Check
This is where the interesting part comes in (and perhaps cause of concern):
- Revenue (2024): $1.9 billion (up from $229M in 2023)
- Net Loss: About $863 million
- Price/Sales: 9x to 20x, or so they say.
- Industry Average P/S: Closer to 2x to 4x
Translation? It is the case that investors are paying a steep price on each dollar that CoreWeave is earning- since they are betting on a massive future growth.
But keep in mind: high- growth expectations are accompanied by high-risk.
So… What’s the Risk?
And now we should not candycoat it, there are indeed some red flags:
- It’s losing money, Like, a lot Although the revenues are surging, Coreweave is not profitable yet.
- It has major debt It is estimated that it owes between 10 -11 billion.
- Customer concentration The two companies provide more than 70 percent of its revenues. When either of them steps out, it is dicey.
- Valuation pressure Holding a price this high on stock there is a lot of pressure to keep growing fast. Any hiccup? The stock could tumble.
But Wait–Here is Why Some Investors Still Like It.
Despite such fears, there are certain bulls (stock market lingo to positive investors) who believe that CoreWeave may come to be the next Amazon Web Services of AI. That’s a huge statement.
Why?
- Massive AI demand. All of them, startups as well as tech giants, require cloud servers based on GPUs.
- Strong partnerships. Nvidia, Microsoft, OpenAI… these are not small names.
- Huge backlog. They have already registered billions in the future contracts.
In case AI continues its current expansion (which is possible), CoreWeave may be able to ride the wave during several years.
So, Is It Overvalued?
And there is the fact: Yes, by standard valuation, CoreWeave is overvalued. It has an astronomical price to earnings ratio, is not profitable and is highly indebted.
But also: Growth stocks can appear expensive–until they become that price. Think Tesla, Amazon, or Nvidia in earlier days.
The point is whether CoreWeave can:
- Scale sustainably
- Diversify its customer base
- Realize profitability within 1- 2 years.
Who Might Like Coreweave Stock?
- Bullish AI investors who do not mind volatility in the short term.
- Individuals that are comfortable with speculative growth plays.
- Any person that already has AI infrastructure and wants to diversify outside of Nvidia.
Who Should Be Cautious?
- Investors who seek profits, dividends or stability and are conservative.
- Anybody who needs an AI bet that is safe (not that one).
- Investors who do not enjoy red in their portfolio when the market is down.
Final Takeaway
Coreweave is exciting. It’s bold. And it is playing in one of the hottest tech areas.
But at today’s price? You’re paying for potential. The shares are today overvalued–but that does not mean it will not at length be rewarded.
Provided you believe in the future of AI infrastructure, Coreweave might be worth a look- or even a partial ownership.
Pro-tip: Hype should not be pursued when you are new to investing. Begin small, do your research, be frank about your risk-taking ability.
Also Read: How Nvidia Earnings and Bitcoin Are Connected in Today’s Market : 2025
