CoreWeave And The $40B Whisper
The AI infrastructure player popped on a technical benchmark, but the real story is the staggering size of the deals being signed behind the scenes.
It’s not every day a stock surges +9.7% while the rest of the market takes a breather. But that’s exactly what CoreWeave (CRWV) did on Tuesday, handily outperforming the broader technology sector as the S&P 500 slipped by -0.6%.
If you only read the press release, you’d think this was all about technical bragging rights.
More Than Just Speed
The company announced it had set new records in the MLPerf® Training v6.0 benchmark suite, a major benchmark for artificial intelligence hardware. CoreWeave’s cloud infrastructure trained a massive model known as DeepSeek-V3 in a blistering 2.02 minutes. It’s an impressive feat, a clear signal that its technology is at the bleeding edge of the AI arms race.
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But that’s not what had traders hitting the buy button.
A Whisper Louder Than A Press Release
While the engineers were celebrating, Wall Street was listening to a different story, courtesy of an analyst at Cantor Fitzgerald. The call was simple: investors are “Woefully Undervaluing” CoreWeave. The reason? The sheer scale of business the company is winning. According to the analyst, CoreWeave signed an incredible $40 billion in long-term contracts in the first quarter of this year. Even more startling was the suggestion that it “could sign another $40 billion in Q2.”
Let’s put that in perspective. This is a company with a market capitalization of about $61.7 billion. It’s pulling in contracts that could soon eclipse its entire valuation, all while its revenue is already growing at 129.9% year over year. Of course, that growth comes at a cost; the company is still posting negative current operating margins of -2.6%.
The technology is clearly world-class, and the demand is immense. But with contracts this large piling up for a company still in the red, can management turn unprecedented demand into actual profit?
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