CoreWeave Sees Tremendous Growth Since IPO
CoreWeave (NASDAQ: CRWV), a cloud-based AI infrastructure provider, went public in March 2023 at $40 per share and now trades at nearly $100. Since transitioning from Ethereum mining to AI tasks, the company has expanded its data center operations from three locations at the end of 2022 to 33 across the U.S. and Europe.
CoreWeave’s revenue surged dramatically from $16 million in 2022 to a projected $1.9 billion in 2024, with expectations to rise to $5.1 billion in 2025 and potentially reach $19.5 billion by 2027. The company attributes its growth to partnerships with major players like Microsoft and OpenAI, while currently generating approximately 70% of its revenue from Microsoft.
Despite this growth, CoreWeave faces challenges such as potential debt increase and a failed acquisition attempt, which could compress its valuations. With a market cap of $46.9 billion, analysts suggest that if the company achieves revenue targets and trades at five times sales, its market cap may exceed $98 billion by 2027.
