CoreWeave: Irrational AI CapEx Fear Leads To Golden Investment Opportunity

CoreWeave delivered a strong Q2 this week, exceeding revenue and earnings expectations, and reported a record $104.2 billion backlog, with incremental commitments raising effective backlog to $129.2 billion. CRWV achieved 112% year-over-year revenue growth and a 59% adjusted EBITDA margin (+3 PP Q/Q), demonstrating robust demand for its AI compute services and GPU leasing business. Despite aggressive debt-financed CapEx and investor concerns over leverage, CRWV trades at a significant valuation discount to rival Nebius, presenting catch-up potential. I maintain a high-risk, high-reward bullish stance on CRWV, expecting the valuation gap to narrow over the next 1-2 years if execution against backlog continues.

CoreWeave (CRWV) beat expectations for the second-quarter this week, resulting in a sharp upward surge of 19% on Wednesday. CoreWeave proved that it can add to its revenue backlog, maintain a triple-digit, year-over-year growth rate for its