What Is the CoreWeave Stock Story?

CoreWeave’s (NASDAQ: CRWV) stock has been all over the headlines lately – the company’s wild ride since going public in March 2025 has caught the eye of investors. Since its IPO at around $40 a share, CoreWeave’s stock has skyrocketed — more than tripling at one point. That kind of post-listing run doesn’t happen every day.

CoreWeave isn’t your average cloud company. It specializes in high-performance, GPU-based infrastructure tailor-made for artificial intelligence — think ChatGPT, LLMs, and generative AI. With demand for AI compute growing like crazy, CoreWeave’s role as a go-to infrastructure provider has turned it into a must-watch player. But, if you’re looking for potential gains with less volatility, the High Quality portfolio has comfortably outperformed the S&P 500, delivering over 91% returns since inception. 

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A significant share of CoreWeave’s revenue comes from Microsoft, but the company’s biggest boost this year has been its deepening ties with OpenAI. In March 2025, OpenAI signed a five-year, $11.9 billion contract with CoreWeave, followed just two months later by another $4 billion agreement extending through 2029. Riding this momentum, CoreWeave posted nearly $1 billion in Q1 2025 revenue—a staggering 400% year-over-year jump—and reported a $26 billion backlog. Adding to its credibility, NVIDIA holds about a 7% stake in the company, a factor that makes the stock especially appealing to AI-focused investors. CoreWeave is also doubling down on infrastructure: it announced a $9 billion all-stock acquisition of Core Scientific to secure more assets outright, while issuing $1.75 billion in notes to fund further expansion.

What’s Next?

CoreWeave’s P/S ratio (18–20x) reflects a market betting on continued explosive revenue growth, superior infrastructure performance (via Nvidia partnerships), and synergies from strategic acquisitions. From a long-term sourcing perspective, if CoreWeave can combine scale, profitability, and lower risk, the current valuation may prove well-founded. But in the short term, the company remains exposed to valuation compression if growth falters.

One thing’s for sure: CoreWeave’s story is far from over, and it’s going to be an interesting ride for anyone brave enough to buckle up at the current lofty valuations. Now, taming valuation contextually is just one of the many approaches we take while constructing the Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

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