I Can't Stay Quiet on CoreWeave Stock (CRWV) Any Longer

About this video

• Video Title: I Can't Stay Quiet on CoreWeave Stock (CRWV) Any Longer
• Channel: Ticker Symbol: YOU
• Speakers: Alex (implied by closing)
• Duration: 15:09

Overview

This video analyzes CoreWeave (CRWV), an AI infrastructure company, discussing its business model, recent earnings, significant risks, and stock valuation. The presenter argues that despite a recent stock price drop and market concerns, CoreWeave is undervalued due to its strong backlog, growing revenue, and critical role in the AI ecosystem, positioning it as a "picks and shovels" investment during the AI gold rush.

Key takeaways

• CoreWeave's Business Model: CoreWeave aims to be the "Amazon Web Services of the AI era," providing high-performance computing infrastructure and GPU access for companies that cannot build it themselves. They operate numerous data centers with a large capacity of Nvidia GPUs and significant power access.
• Customer Base: CoreWeave serves AI labs for model training, enterprises for AI integration, and hyperscalers needing overflow capacity. Key clients include OpenAI, Microsoft, Meta Platforms, and Nvidia.
• Financial Performance and Backlog: The company reported record revenues of $1.36 billion (up 134% year-over-year) and a substantial $55 billion revenue backlog, indicating strong future contracted revenue.
• Recent Stock Performance and Risks: The stock has recently dropped by nearly 40%. Key risks discussed include the company's net loss due to high capital expenditures and stock-based compensation, construction delays impacting guidance, and broader market concerns about an AI bubble, as highlighted by Michael Bur.
• Valuation and Investment Thesis: Despite short-term challenges and market pessimism, the presenter believes CoreWeave is significantly undervalued, trading at a market cap much lower than its committed revenue backlog. The company is seen as a critical infrastructure provider essential for the AI boom, making it a compelling long-term investment.