CoreWeave, Inc. (CRWV): A Bull Case Theory

We came crossed a bullish thesis connected CoreWeave, Inc. connected Level-Headed Investing’s Substack by Bernardo. In this article, we volition summarize the bulls’ thesis connected CRWV. CoreWeave, Inc.'s stock was trading astatine $73.12 arsenic of November 28th.

CoreWeave (CRWV) has emerged arsenic a high-profile subordinate successful the AI infrastructure space, capturing attraction with its GPU rental exemplary and accelerated growth fueled by hyperscalers like Microsoft, Google, and Amazon. The institution operates 33 data centers with implicit 250,000 NVIDIA GPUs, positioning itself arsenic a cardinal enabler of generative AI workloads.

While gross has surged—$1.9 cardinal successful 2024 and $1.2 cardinal successful Q2 2025—profitability tells a antithetic story. GAAP operating margins are thin, and nett losses stay important owed to tremendous depreciation, interest, and CapEx obligations, reflecting the capital-intensive quality of a concern that relies connected fast-aging hardware. Despite an adjusted EBITDA borderline of 62%, CoreWeave’s actual currency procreation is negative, highlighting the disconnect betwixt header maturation and durable profitability.

The company’s maturation is heavy debt-financed, with full borrowings reaching $11.17 billion, mostly secured against GPUs whose worth declines arsenic caller chips are released. Financing comes chiefly done Delayed-Draw Term Loan (DDTL) facilities, which widen recognition based connected lawsuit contracts, creating a fragile operation babelike connected continued request and refinancing.

Customer attraction compounds the risk: Microsoft unsocial accounted for 62–71% of gross successful 2024–Q2 2025. Any slowdown oregon declaration renegotiation could trigger liquidity stress, portion replacement cycles for GPUs guarantee that inflows are mostly consumed by ongoing CapEx.

CoreWeave’s model resembles a commodity work much than a platform, lacking sticky software, developer ecosystems, oregon proprietary advantages. Its reliance connected leveraged growth, concentrated clients, and a perpetual hardware replacement loop underscores structural fragility.

While AI infrastructure request is secular and substantial, CoreWeave’s current concern risks, including leverage, concentration, and obsolescence, suggest that sustainable economics person yet to beryllium proven, leaving investors exposed to important operational and fiscal hazard contempt awesome top-line expansion.

Previously we covered a bullish thesis connected Palantir Technologies Inc. (PLTR) by Deep Value Returns successful May 2025, which highlighted the company’s beardown AI growth, $1 billion+ quarterly revenue, and robust authorities and commercialized contracts. The company's banal terms has appreciated astir by 54.74% since our coverage. The thesis inactive stands arsenic PLTR’s standard and profitability stay compelling. Bernardo shares a akin bullish presumption connected CoreWeave, Inc., but emphasizes risks from dense leverage, lawsuit concentration, and capital-intensive GPU infrastructure.