CoreWeave's $99.4 billion backlog and cheap valuation signal multibagger potential

EarningsIndustry Impact 4
โดย The Motley Fool·Read original
Summary · why it matters

CoreWeave, the neocloud infrastructure provider backed by a $2 billion investment from Nvidia in January, holds a $99.4 billion revenue backlog that grew 284% year over year in the first quarter, fueling expectations of multibagger returns. The company's quarterly revenue rose 112% to $2.1 billion, and it has 10 customers each committed to spending at least $1 billion on data center capacity, including hyperscalers like Microsoft and Meta, as well as AI firms OpenAI and Anthropic. CoreWeave's active data center power capacity reached 1 gigawatt, with contracted capacity at 3.5 gigawatts and a target of 8 gigawatts by the end of the decade, though rising interest expenses—doubling to $536 million in the first quarter—weigh on profitability. Management expects to convert 36% of the backlog into revenue over the next two years and 75% over four years, projecting annualized run rate revenue of $18 billion by end-2026 and $30 billion by end-2027. Trading at under 8 times sales with a market cap of $53 billion, the stock could reach a $208 billion valuation if revenue hits $40 billion by end-2028 and it matches the Nasdaq's price-to-sales multiple of 5.2.

Impact on stocks 5

Artificial Intelligence▲ · 4 stocks
CoreWeave, Inc. Class A Common Stock
CRWV
▲ PositiveDemandrelevance

CoreWeave's $99.4B backlog grew 284% YoY, with 10 customers each committed to at least $1B, signaling massive end-customer demand for its data center capacity.

NVIDIA Corporation
NVDA
▲ PositiveCapitalrelevance

Nvidia's $2B investment in CoreWeave in January is noted, but the article focuses on CoreWeave's backlog and valuation, not Nvidia's own business.

Financials▲ · 1 stocks

Theme Impact 3

Off-coverage companies 2

AnthropicPrivate▲ Positive
Demandrelevance

Anthropic is named as one of 10 customers with at least $1 billion committed to CoreWeave data center capacity, indicating strong demand for AI services.

OpenAIPrivate± Mixed
relevance

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