In a relatively brief span since becoming a publicly traded entity, the cloud platform service provider CoreWeave (CRWV) has sparked significant enthusiasm. Ever since its initial public debut, its shares have experienced an astounding surge of more than 200% in value.
Investors tend not to dwell on the past; instead, they are keenly interested in future prospects. With that in mind, investors should anticipate significant developments from CoreWeave within the upcoming year.
Management expects massive revenue growth in 2025 — and that’s not all
The increasing need for data center facilities to accommodate AI computing is skyrocketing. Lacking appropriate infrastructure could hinder AI companies from fulfilling their demanding computational requirements. Consequently, corporations are pouring substantial resources into data centers, a trend that has undeniably boosted CoreWeave’s success. In 2023 and 2024, the company reported annual revenue growth of an impressive 1,346% and 737%, respectively.
From a profitability perspective, I’m thrilled to say that our journey has been nothing short of remarkable! While we faced some challenges, reporting an adjusted operating loss of $21.4 million in 2022, the tide began to turn in 2023. That year, we proudly reported a modest adjusted operating income of $0.7 million. But In 2024, we celebrated an astounding adjusted operating income of $355.8 million! It’s been an incredible ride, and I can’t wait to see what the future holds for us!
Moving forward, the company is optimistic that their earnings and profit expansion will carry on until 2025. Moreover, they anticipate sales of approximately $4.95 billion to $5.1 billion in 2025, and forecast adjusted operating income between $800 million and $830 million. If the company reaches the midpoint for both these projections, it would indicate a year-over-year growth of 163% in revenue and 129% in adjusted operating income.
After 2025, CoreWeave may experience even more robust growth
As an ardent investor, I can’t help but feel thrilled about management’s optimistic projection for CoreWeave in 2025. However, it’s crucial not to let our excitement be confined to the next year alone. Instead, we should cast our gaze towards the future, exploring what 2026 and beyond may hold for CoreWeave.
Luckily, the company has provided us with a clearer picture of its long-term strategy with its recent announcement of acquiring Core Scientific (CORZ), a pioneer in AI computing and cryptocurrency mining data centers. This move not only broadens CoreWeave’s horizons but also positions it as a key player in the rapidly evolving tech landscape.
Let’s keep our eyes on the prize, folks! 2025 is just the beginning of an exciting journey for CoreWeave and its investors.
By acquiring additional power capabilities from Core Scientific, CoreWeave strengthens its ability to meet the energy demands of its AI-focused data centers. Currently, CoreWeave utilizes approximately 0.8 gigawatts (GW) of power capacity provided by Core Scientific, and with this acquisition, it will gain access to an additional 0.5 GW of power capacity currently held by Core Scientific. Moreover, the deal includes an extra 1 GW of potential expansion capacity for future growth. This expanded power supply eliminates a potential obstacle in expanding CoreWeave’s data center infrastructure.
A positive indication for CoreWeave’s upcoming phase is the potential synergies that will arise post-acquisition. As per the management, CoreWeave stands to gain significantly by shedding approximately $10 billion in lease liability overhead costs over the next 12 years. Once the acquisition is finalized, they anticipate operating more economically, aiming to achieve $500 million in annual cost savings by the end of 2027.
Is now a good time buy CoreWeave stock?
Despite CoreWeave viewing the forthcoming purchase of Core Scientific (anticipated to finalize by the end of the year) as a catalyst for growth, the market exhibits a blend of sentiments. At present, shares of CoreWeave have declined approximately 17% since the announcement of the acquisition.
By gaining a clearer understanding of how the power needs are met for CoreWeave’s operations and the massive savings they’ll achieve in lease liability expenses, this acquisition becomes very appealing. It makes CoreWeave even more enticing as a chance to capitalize on the surging tide of AI development.
Investing in CoreWeave carries some risk since the company is currently reporting a net loss and there’s uncertainty about its ability to carry out its growth strategies. However, for investors who are willing to take on this risk, it might be an opportune moment to purchase CoreWeave stocks.
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2025-07-19 14:28