CoreWeave Looks Cheap, But I'm Staying Away

CoreWeave is a leading AI infrastructure pureplay, but recent volatility and profitability concerns justify a Hold rating. CRWV’s growth is driven by large multi-year contracts, rapid capacity expansion, and a strong customer base, notably Microsoft at 67% of revenue. Despite impressive revenue growth and capacity scaling, profitability is hampered by high debt, heavy capex, and margin pressures from depreciation and operating costs. Valuation appears discounted versus peers, but elevated leverage, customer concentration, and evolving contract models pose material risks to sustainable returns.

CoreWeave ( CRWV ) has largely sat out the YTD rally in the AI trade. Despite having a great spring, with the stock nearly hitting $140/share back in May, the stock has since halved. This is rather intense volatility and the