CoreWeave (NASDAQ:CRWV) burst out of the starting gate last year, springing upward following its springtime IPO. Though the white-hot exuberance wore out during the summer months, CRWV has still gained over 120% since hitching its wagon to the public markets.
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The GPU-as-a-Service provider has enjoyed growing revenues and the future points to even higher demand, as demonstrated by its reported backlog of $55.6 billion at the end of Q3. The market, however, didn’t love hearing about a delay with a third-party data center developer at the time of the Q3 earnings report.
Moreover, CRWV hasn’t been immune from overall worries of an AI bubble. The company’s share price has lost ~28% of its value over the past three months, caught up in the concerns that have been impacting numerous AI-related firms.
However, a fresh blast of good news boosted CRWV in late January, with the revelation that Nvidia would be expanding its partnership with CoreWeave via a $2 billion investment.
“Together, we’re racing to meet extraordinary demand for NVIDIA AI factories — the foundation of the AI industrial revolution,” stated Nvidia CEO Jensen Huang in the press release announcing the deal.
Investor Adria Cimino believes that the company’s best days are still ahead of it, even going so far as to call CRWV a potential “millionaire-maker technology stock.”
“The company may be in the early days of its revenue growth story,” explains the 5-star investor.
Cimino celebrates CoreWeave’s business case. She points out that the company seems to have found a unique niche, giving companies flexibility to rent GPUs for different periods of time.
“CoreWeave delivers something AI customers need a lot of right now and probably will need a lot of in the future too: capacity for workloads,” adds Cimino.
And for that reason, the investor is feeling bullish about the future, believing that CRWV has plenty more room to run.
“As companies continue to search for compute, CoreWeave, as an AI specialist, is well positioned to benefit and that could supercharge the stock’s performance in the quarters to come,” sums up Cimino. (To watch Adria Cimino’s track record, click here)
Wall Street presents a bit of a conundrum, however. 13 Buys and 12 Holds combine to give CRWV a Moderate Buy consensus rating, its 12-month average price target of $124.52 points to gains surpassing 50%. (See CRWV stock forecast)
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.