CoreWeave: The Debt Is High, But The Backlog Could Drive A FY 2028 Inflection

Michael Del Monte 7.63K Followers Follow Summary CoreWeave demonstrates hyperscale momentum, with a $104.2b backlog and 4.2GW contracted power, underpinning a Strong Buy rating and $596/share target. CRWV is expected to reach a major inflection point in eFY28, turning profitable as scale dilutes high financing costs and margins improve. AI infrastructure demand and durable GPU rental rates support CRWV’s growth, with managed AI inference and general compute ARR accelerating through FY26. High leverage (6.71x net debt/aEBITDA) poses risk, but aggressive capacity buildout is seen as necessary to capture cloud market share and future high-margin revenue. Sansert Sangsakawrat/iStock via Getty Images CoreWeave ( CRWV ) is gaining momentum in the market as it achieves hyperscale in terms of data center compute capacity. With a backlog now sitting at $104.2b and 4.2GW of contracted power capacity, CoreWeave is in a This article was written by Michael Del Monte 7.63K Followers Follow Monte Independent Investment Research: Michael Del Monte is a buy-side equity analyst with expertise in the technology, energy, industrials, and materials sectors. Prior to working in the investment management industry, Michael spent over a decade in professional services working across industries that include O&G, OFS, Midstream, Industrials, Information Technology, EPC Services, and consumer discretionary. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRWV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.