One of the new AI kids on the block – CoreWeave (NASDAQ:CRWV) – experienced some growing pains last week following its 2025 Q2 earnings release.
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It certainly wasn’t because growth was down, however, far from it. The company delivered revenues of $1.21 billion, which was up 207% year-over-year and also beat expectations by a cool $131.4 million. However, an EPS GAAP miss by -$0.11 disappointed investors.
That wasn’t the only concern, as the company’s interest expenses have increased fourfold over the past year and a quarter, surging from $67 million in Q1 2024 to $267 million in Q2 2025. The company also suggested that some of the expected growth would be “back-loaded” – meaning the coming months might not be quite as turbocharged.
All these pressure points contributed to a post-earnings selloff, and CRWV has lost almost a third of its value over the past few days.
One top investor known by the pseudonym Deep Value Investing believes that focusing on the bottom-line earnings miss, well, misses the point.
“Despite short-term risks including high interest expenses and a softer Q3 backlog growth, I believe CoreWeave’s unique US pure play AI data center position offers compelling upside,” states the 5-star investor, who is among the top 4% of TipRanks’ stock pros.
Deep Value points to the company’s backlog of $30.1 billion – major growth of 86% year-over-year, which includes a $4 billion extension signed with OpenAI in May. This should extend into the coming year, and the investor notes that triple digit growth is projected in the first two quarters of 2026.
The investor also explains that CoreWeave was the first data center infrastructure firm to deploy Nvidia’s GB200 NVL72 chips at scale, a feat it is poised to repeat with the Nvidia GB300 NVL72 platform. This could also be another big catalyst for CRWV, though Deep Value does not expect this to occur until Q4 2025.
“Whoever said CoreWeave doesn’t have a moat clearly doesn’t realize that this is the only public company in the US focusing solely on data center buildout,” adds Deep Value.
Foreseeing big things ahead, Deep Value is initiating a position in CRWV, which the investor expects to add to in the months to come.
“The growth rate in revenue and, most importantly, backlog, justifies the price action around the IPO (in my view),” concludes Deep Value Investing, who rates CRWV a Strong Buy. (To watch Deep Value Investing’s track record, click here)
That’s significantly more bullish than Wall Street feels. With 16 Holds – to go along with 6 Buys and 2 Sells – CRWV has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $115.29 has an upside of ~15%. (See CRWV stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.