CoreWeave stock soars despite $35 billion debt and heavy losses
CoreWeave shares jumped 8% in after-hours trading Tuesday after the AI infrastructure provider reported revenue that beat Wall Street analyst forecasts. Quarterly revenue reached $2.58 billion, a 112% increase year-over-year, highlighting strong demand for generative AI hardware.
CoreWeave stock jumped 8% in after-hours trading Tuesday after the AI infrastructure provider reported revenue that beat Wall Street analyst forecasts. The company posted quarterly revenue of $2.58 billion compared to a forecast of $2.56 billion. This is a sharp 112% growth in revenue compared to the same quarter last year, highlighting the high demand for hardware designed to run generative AI models.
Heavy losses alongside huge debts
Alongside the jump in revenue, CoreWeave is still far from profitability. The company recorded a net loss of $626 million, or a loss of $1.14 per share, compared to a loss of $290 million in the same quarter last year. To finance the purchase of advanced Nvidia chips and other equipment, the company has accumulated huge debts. At the end of the quarter, the debt on its balance sheet stood at $35 billion, a sum reflecting the massive investments required to build data centers.
Despite the losses and debts, the company is showing exceptionally strong future data. CoreWeave's order backlog currently stands at $104 billion, and it holds contracts for electricity supply of 1.5 gigawatts. During the quarter, tech giant Meta announced it would increase its purchases from the company by an additional $21 billion. In addition, CoreWeave signed a multi-year agreement with the company Anthropic and received a $6 billion commitment from the trading firm Jane Street.
Growing competition in the cloud market
CoreWeave, which was founded eight years ago and went public on Nasdaq in March 2025, is racing against tech giants Amazon, Google, and Microsoft to build dedicated data centers for artificial intelligence. Unlike its large competitors, CoreWeave is not profitable at this stage. At the same time, competition in the market is tightening as new players enter the field. SpaceX has started selling excess computing capacity, and Meta is considering launching its own cloud service.
From the beginning of the year until the close of trading on Tuesday, CoreWeave stock recorded a 26% increase, significantly stronger performance compared to the S&P 500 index, which rose by about 13% in the same period. The company's management is expected to discuss the financial results and provide forecasts for the future in a conference call with analysts.
