Meta, OpenAI and Anthropic Are Lining Up for CoreWeave's Computers

CoreWeave rents out powerful computers that companies use to build and run artificial intelligence (AI). This quarter it sold twice as much as it did a year ago, and it showed the first real sign that all that growth can eventually make money instead of just spending it.

The demand is coming from the biggest names in tech: Meta, Anthropic, OpenAI and Microsoft, who are all lining up to book CoreWeave's computing power years in advance. The company says it has essentially sold out everything it can build in the near term, and it was the first to get Nvidia's newest AI chips up and running.

The thing to watch now is money. CoreWeave borrows heavily to build giant data centres, so its profits hinge on two things: keeping more of each dollar it earns, and paying less to borrow. It doesn't expect to be truly profitable until 2028, so every step toward that matters.

Key Financial Metrics

●     Revenue: $2.58 billion, more than double a year ago (+112%)

●     EBITDA: $1.51 billion, cash-basis profit (59% margin, was 62%)

●     Operating income: $128 million, small but improving fast, from $21 million last quarter

●     Net income: $567 million loss, wider than the $130 million loss a year ago

●     EPS: About $1.03, a smaller loss than the ~$1.20 Wall Street feared

●     Depreciation & interest: $1.39bn + $640m = ~79% of revenue, the two heaviest costs

Future business already booked:

●     Revenue backlog: $104 billion of work already signed, up 246% in a year

●     Net new commitments: +$25 billion of new deals signed early in the next quarter

●     Notable contracts: Meta added $21 billion; Anthropic signed a multi-year deal; trading firm Jane Street committed $6 billion and invested $1 billion.

●     Managed inference: Its run-the-AI service jumped from ~$1 million to ~$100 million in yearly revenue in a single quarter

Analysis & Consensus

How the shares have moved:

CoreWeave closed around $90.30 on the day of the report, then jumped roughly 14% - 17% aftermarket on the good news, pushing it back above $100. It's up about 26% so far this year, better than the overall market, and recently joined the Nasdaq-100. It pays no dividend. Zoom out, and the picture is bumpier: since early investors were first allowed to sell, about a year ago, the stock is down roughly 9% while the broad market rose about 20%. CoreWeave only went public in March 2025.

What could push the stock UP:

●     Cheaper borrowing: Nvidia is helping organise a $500 billion pool of money for AI projects. The CEO says this can only lower what CoreWeave pays to borrow, its single biggest cost lever.

●     Turning the order book into cash: $104 billion of signed work gives it years of sales it just needs to deliver.

●     Higher-margin add-ons: Storage, networking, software, and its AI-running service earn more per dollar; newer deals are already more profitable than older ones.

What could push the stock DOWN:

●     Heavy fixed costs: Equipment wear-and-tear plus interest already eat roughly 79% of sales, so it stays in the red until borrowing gets cheaper.

●     Lots of debt and spending: ~$35 billion of debt and $35 billion - $39 billion of planned spending against ~$12 billion - $13 billion of sales, meaning real profit isn't expected until 2028.

●     Few but big customers: A handful of giants make up most sales, so losing one would hurt.

●     Insiders selling: Early investors and executives have been cashing out shares, including the CEO selling some last week at about $91.80.

●     Heavy reliance on Nvidia: Nvidia is CoreWeave's key supplier, a part-owner (9%) and a customer all at once, a strength that's also a risk.

What the analysts think

Most experts who follow the stock rate it a Buy. On average, they think it could reach about $138 - $148 over the next year, well above today's price, but their guesses vary hugely, from $36 to $303. Opinion is far from united.

To keep rising, the stock needs to show three things: bigger profit margins, cheaper borrowing, and a clear path to actually making money.

Disclaimer:
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** This article was prepared by BROKSTOCK analyst Maboko Seabi