CoreWeave (NASDAQ:CRWV) stock has been caught in the broader debate over an AI bubble, which has pressured the very companies that once benefited most from the rabid excitement surrounding the revolutionary technology.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
But sentiment alone doesn’t explain the recent pullback. The company disclosed that a delay tied to an unnamed third-party customer, specifically involving the development of a data center, forced it to trim its full-year revenue outlook from $5.15–$5.35 billion to $5.05–$5.15 billion.
The combination of broad worries and this specific setback has driven down CRWV’s share price, erasing 31% of its value since the company’s Q3 earnings report.
However, top investor Oliver Rodzianko isn’t buying the bearish argument. Instead, he’s taking a page from Warren Buffett’s playbook and stepping in while others grow cautious.
“Buying short-term fear amid long-term growth has always paid,” emphasizes Rodzianko, who is among the top 1% of stock pros covered by TipRanks.
The investor believes that much of the concern is simply noise, and that CoreWeave remains perfectly primed to benefit from the continued AI expansion. The desire for AI is going nowhere, posits Rodzianko, and capex – along with a craving for CoreWeave’s compute power – will continue to be in high demand.
“We have only just discovered AI; indeed, the discovery is akin to the cavemen discovering fire – to believe our utilization of the process will just stall is not only unprogressive, but it is absurd,” the investor adds.
When it comes to the specific data center delay, Rodzianko is incredulous that this should be causing such an impact. He points out that the contract remains valid, and the revenues are simply being shifted into the following year.
In fact, the Q3 call encouraged the investor that CoreWeave is on track. He cites the company’s revenue growth (up from $584 million in Q3 2024 to $1.36 billion in Q3 2025) and current backlog ($55.6 billion, which almost doubled sequentially) as evidence that CRWV will surge back in the months ahead.
“I believe the drawdown is a buying opportunity over the long arc of the AI-infrastructure investment supercycle,” sums up Rodzianko, who is reiterating a Strong Buy rating. (To watch Rodzianko’s track record, click here)
Despite the past few dreary weeks, Wall Street is generally positive about CRWV as well. With 12 Buys, 11 Holds, and 1 Sell, CRWV carries a Moderate Buy consensus rating. Its 12-month average price target of $148.32 implies that the stock will double in value during the coming year. (See CRWV stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
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.