TLDR
- CoreWeave (CRWV) revenue surged 276% year-over-year to $2.19 billion in H1 2025, but net losses widened to $661 million
- Stock dropped 33% in August following Q2 earnings despite impressive 200%+ revenue growth
- Company operates 33 data centers (up from 15 at end of 2024) serving clients like OpenAI, Meta, and IBM
- Nvidia holds $2.2 billion stake in CoreWeave, making it their largest single stock investment
- Analysts have mixed views with 8 buy ratings and 2 sell ratings, median price target of $110
CoreWeave delivered another quarter of explosive revenue growth in the first half of 2025. The AI-focused data center company reported revenue of $2.19 billion, representing a 276% increase from the same period last year.
The company has expanded rapidly from just three data centers in 2022 to 33 facilities across the U.S. and Europe. Revenue jumped from $16 million in 2022 to $1.92 billion in 2024. Analysts expect full-year 2025 revenue to reach $5.25 billion, a 173% increase.
CoreWeave’s business model focuses exclusively on providing cloud-based GPU services for AI processing. The company claims this specialized approach allows it to process AI tasks 35 times faster and 80% cheaper than traditional cloud platforms.
Major tech companies rely on CoreWeave’s services. OpenAI, Meta, and IBM are among its top customers using the company’s GPU infrastructure for machine learning and AI workloads.
Stock Performance Takes Hit Despite Growth
The stock price tells a different story than the revenue numbers. CoreWeave shares fell approximately 33% in August following the Q2 earnings report. The decline came despite the strong revenue growth figures.
Trading volume has been heavy recently with 69,426 shares changing hands. The stock currently trades at $93.86, well below its 52-week high of $187.00. The 52-week range extends down to $33.52.
Market discussions on social media platforms have focused on the sustainability of the company’s growth trajectory. Some investors view the recent decline as a potential entry point, while others express concerns about ongoing losses.
Profitability Remains Elusive
CoreWeave’s rapid expansion comes with substantial costs. Net losses widened from $31 million in 2022 to $863 million in 2024. The first half of 2025 saw losses of $661 million, with analysts projecting a full-year loss of $1.1 billion.
Operating expenses have increased as the company opens new data centers and purchases more GPUs from Nvidia. Energy costs for running the facilities have also risen substantially. Interest payments surged from $28 million in 2022 to $784 million in 2024 as the company funded growth through debt.
The company carries $22.42 billion in total liabilities against $1.15 billion in cash and equivalents. The planned $9 billion acquisition of Core Scientific will be funded entirely through newly issued shares.
Nvidia has made CoreWeave its largest individual stock investment. The chip giant initially invested $100 million in 2023, followed by another $250 million during CoreWeave’s March IPO. Nvidia now holds 24.28 million shares worth approximately $2.2 billion.
The partnership extends beyond financial investment. CoreWeave spent roughly $100 million in 2022 installing Nvidia’s H100 GPUs in its data centers, using those chips as collateral for additional funding.
Wall Street analysts remain divided on the stock’s prospects. Eight firms have issued buy ratings while two have issued sell ratings. Recent price targets range from $65 to $200, with a median target of $110.
Insider trading activity shows heavy selling pressure. Company insiders have completed 78 sales versus just 3 purchases over the past six months. CEO Jack Cogen has sold over 4.2 million shares for $382 million.
CoreWeave will participate in the upcoming Deutsche Bank Technology Conference, where management may provide updates on the business outlook and strategic direction.
