CoreWeave (NASDAQ: CRWV) has seen its stock surge 268% since its IPO in late March, reaching a revenue of $982 million last quarter, up 420% year over year. The company forecasts a revenue of approximately $5 billion by 2025, spurred by increasing demand for AI cloud services. In comparison, Nvidia’s stock has remained flat year to date as of June 15, 2025.
However, CoreWeave is also facing significant capital expenditures, expecting to spend at least $20 billion in 2025, leading to a projected free cash burn of around $15 billion if revenue estimates are met. The company currently holds under $5 billion in cash and may require additional financing through debt or selling shares to support its rapid expansion.
With a market cap of $70 billion, some analysts express caution about CoreWeave’s valuation due to its high price-to-sales ratio of 14.2 and significant debt, suggesting that now may not be the best time for investment.
