CoreWeave’s earnings report had me sweating: Q3 revenue was $3.66 billion, up 168% year over year. Its backlog reached $132.5 billion, up 138%, and the stock surged more than 16% after hours.
On one hand, the demand is real: orders are pouring in, and the company raised its full-year guidance to more than $13 billion. It looks like people are really getting on board with the AI infrastructure boom. On the other hand, so are the bills: capital expenditures are projected at $37 billion to $39 billion this year, and debt is still looming overhead. Every dollar it earns is going toward building data centers and buying GPUs.
My take: don’t rush to chase the stock. The orders are real, and so are the bills. This isn’t proof that AI demand is fading—it’s that the AI infrastructure bill has arrived first. The 16% after-hours pop was the excitement of earnings night; next, we’ll see how the company plans to pay back that $37 billion.
Which side are you on? Do you think this CoreWeave rally means AI infrastructure is truly taking off, or is it borrowed money going up in fireworks?
#CoreWeave
On one hand, the demand is real: orders are pouring in, and the company raised its full-year guidance to more than $13 billion. It looks like people are really getting on board with the AI infrastructure boom. On the other hand, so are the bills: capital expenditures are projected at $37 billion to $39 billion this year, and debt is still looming overhead. Every dollar it earns is going toward building data centers and buying GPUs.
My take: don’t rush to chase the stock. The orders are real, and so are the bills. This isn’t proof that AI demand is fading—it’s that the AI infrastructure bill has arrived first. The 16% after-hours pop was the excitement of earnings night; next, we’ll see how the company plans to pay back that $37 billion.
Which side are you on? Do you think this CoreWeave rally means AI infrastructure is truly taking off, or is it borrowed money going up in fireworks?
#CoreWeave