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CoreWeave: Hyperscaler Risk Overblown

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  • CoreWeave remains the leading neocloud with a $100 billion revenue backlog, yet trades at a depressed valuation due to debt and competitive fears.
  • Meta Platform's AI cloud ambitions are misunderstood; META’s long-term capacity needs likely reinforce, not threaten, CRWV’s revenue pipeline.
  • CRWV trades at only 2x 2028 EV/S target, with EBITDA forecasted at 70% of revenues and significant cash generation underway.
  • I remain ultra Bullish, viewing the current weakness and sub-$45 billion market cap as a compelling entry point given rapid growth and a strong backlog.
CoreWeave, Inc. (CRWV) remains the leading neocloud, but the market hasn't given the company a lot of benefit for the booming backlog. The AI cloud company has investors fearful of large debt loads, and now a major customer potentially entering the AI space is seen as another negative. My investment thesis remains ultra Bullish with the market likely misinterpreting the competitive threat.


Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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