RADNOR, Pa., Dec. 24, 2025 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is currently investigating potential violations of the federal securities laws on behalf of investors of CoreWeave, Inc. (NASDAQ: CRWV) (“CoreWeave”). CoreWeave’s business model involves using high-interest debt to buy thousands of advanced AI chips from Nvidia, installing them in server racks inside data centers that it leases from third-party landlords, then renting access to the chips to AI co ...

Core Insights - The next phase of the AI industry's development will focus on enhancing the efficiency of technology applications, as stated by Chris Kelly, former privacy chief at Facebook [1] - Major AI companies are competing to build infrastructure to support AI computing power demands, with a need to optimize high-energy-consuming infrastructure [1] - Companies that achieve breakthroughs in reducing data center costs are expected to emerge as winners in the AI sector [1] Industry Trends - According to S&P Global, a surge in global data center construction is anticipated in 2025, with infrastructure-related transaction volumes exceeding $61 billion for the year [1] - OpenAI has committed over $1.4 trillion to AI investments in the coming years, including significant partnerships with Nvidia, Oracle, and CoreWeave [1] Energy Concerns - The rapid data center construction has raised concerns about the ability of the already strained power grid to support these computing infrastructures [2] - A collaboration between Nvidia and OpenAI announced in September requires at least 10 gigawatts of power, equivalent to the annual electricity consumption of 8 million American households [2] - This power requirement is comparable to the total demand during New York City's peak summer electricity usage in 2024 [2] Cost and Competition - The AI industry is increasingly focused on cost concerns, especially following the announcement of a free, open-source large language model by DeepSeek, which has a development cost of less than $6 million [2] - Chris Kelly anticipates the emergence of several Chinese companies in the AI space, particularly after the recent approval for the sale of Nvidia's H200 chips to China [2] - Open-source models, especially those from China, are expected to provide foundational computing power and capabilities for generative and agentic AI [2]

RADNOR, Pa.--(BUSINESS WIRE)-- #classaction--The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is currently investigating potential violations of the federal securities laws on behalf of investors of CoreWeave, Inc. (NASDAQ: CRWV) ("CoreWeave†). CoreWeave's business model involves using high-interest debt to buy thousands of advanced AI chips from Nvidia, installing them in server racks inside data centers that it leases from third-party landlords, then renting access to the chips to AI co ...

Core Weave - CoreWeave is a next-generation neocloud company specializing in large language model (LLM) training and AI inference, with a close relationship with Nvidia for access to high-end GPUs [3] - The company is aggressively increasing capital expenditures, planning to more than double them next year, to meet soaring demand for AI services [4] - CoreWeave has reportedly turned away business worth an estimated $40 billion to $50 billion from Microsoft due to high demand [4] - Citigroup indicates that CoreWeave's capacity is sold out for 2026, with discussions already underway for early 2027 bookings, suggesting potential hypergrowth [5] - Despite a strong performance post-IPO, CoreWeave's stock is still over 50% below its all-time high, indicating room for growth [5] Applied Digital - Applied Digital builds and manages specialized data centers designed for AI, focusing on handling intense heat and power requirements [6] - The company designs cooling systems and provides power, addressing a significant bottleneck in AI infrastructure development [7] - Applied Digital has transitioned from Bitcoin mining to providing data center expertise, attracting companies that need power access but lack building capabilities [7] - Both Applied Digital and CoreWeave experienced strong performances in 2025, with Applied Digital supporting neocloud providers through specialized infrastructure [8]

Group 1 - Nvidia's related stocks experienced a collective surge, with NEBIUS (NBIS.US) rising over 6%, Applied Digital (APLD.US) increasing over 5%, and Recursion Pharmaceuticals (RXRX.US) up over 4.8% [1] - CoreWeave (CRWV.US) also saw an increase of over 4.8%, while Arm Holdings (ARM.US) rose by over 1.5%, and Wenyan Zhixing (WRD.US) increased by over 1.2% [1] - Nvidia (NVDA.US) itself saw a rise of 1.25% [1] Group 2 - Reports indicate that Nvidia plans to begin the first deliveries of its H200 artificial intelligence chips to China by mid-February next year [1]

Core观点 - The article discusses CoreWeave, Inc. (CRWV) as a notable technology stock to consider for investment ahead of the Christmas season, highlighting the author's personal interest in adding it to their portfolio [1] 分组1 - CoreWeave, Inc. is identified as a technology stock that is gaining attention in the market [1] - The author emphasizes a straightforward approach to stock analysis, catering to both beginners and advanced readers [1] - The author also operates a YouTube channel called "The Market Monkeys," where stock analyses are shared [1]

Core Viewpoint - CoreWeave, Inc. (NASDAQ:CRWV) is gaining attention on Wall Street due to its significant role in the AI ecosystem, providing computing infrastructure to AI software companies [2] Company Performance - Shares of CoreWeave were downgraded from Overweight to Neutral by JPMorgan on November 11th, with the price target reduced from $135 to $110 [2] - JPMorgan noted that while there is long-term potential for CoreWeave, delays in data center construction by a third-party firm are a concern [2] Operational Challenges - CoreWeave is currently facing challenges in completing necessary infrastructure, citing a lack of manpower and materials, which could slow down operations [3] - The company acknowledges the need for discipline in managing these operational hurdles [3] Investment Perspective - Despite the challenges, there is a belief that some AI stocks may offer better returns with limited downside risk compared to CoreWeave [3]

Key Points Amazon's success can be tied to cloud computing. CoreWeave is focusing on AI cloud computing. CoreWeave has a long way to go before turning a profit. 10 stocks we like better than CoreWeave › When most people think of Amazon (NASDAQ: AMZN), they think of its sprawling e-commerce business. That shouldn't be surprising, as it's the part that most people interact with weekly (sometimes daily). However, the e-commerce part of Amazon's business isn't what has made it a successful investment ...

Core Viewpoint - CoreWeave's shares surged after Citigroup analysts assigned a buy rating with a 12-month price target of $192, significantly higher than the current trading price, even after a nearly 23% increase on Friday [1] Business Performance - CoreWeave's core issue remains its need for substantial capital investment to demonstrate sustainable profits that justify its valuation [2] - The company operates data centers utilizing Nvidia GPUs, catering to AI labs and hyperscalers, experiencing explosive demand but facing challenges in converting this demand into revenue and profits [3] Financial Highlights - In the third quarter of 2025, CoreWeave reported record revenue of $1.365 billion, a 134% increase year-over-year, and a revenue backlog of $55.6 billion, up from $30.1 billion three months prior [5] - Despite the impressive revenue figures, growth is slowing, with revenue growth decelerating from 207% year-over-year in Q2, which may impact investor sentiment regarding the sustainability of growth [7] Spending and Debt - CoreWeave reported an operating income of $51.9 million in Q3 but incurred a net loss of $110.1 million, primarily due to high interest expenses of $310.6 million, which increased from $104.4 million in the previous year as the company borrows to finance its expansion [8][9]

Core Company Overview - CoreWeave is a neocloud company that provides dedicated AI data centers powered by Nvidia GPUs, serving a diverse customer base including Meta Platforms, Microsoft, OpenAI, and Google [2][8] - The company is experiencing significant demand for its AI data center capacity, leading to remarkable revenue growth, with $3.6 billion generated in the first three quarters of 2025, up from $1.17 billion in the same period last year [1][7] Revenue and Growth Projections - CoreWeave is projected to end 2025 with $5.1 billion in revenue and is expected to sustain growth into 2026, with a revenue backlog that has increased nearly fourfold to $55.6 billion [7][9] - Analysts anticipate that CoreWeave's revenue will more than double in 2026, with a potential stock price increase of 76%, based on a 12-month median price target of $122 [8][6] Market Environment and Capacity Expansion - The company ended Q3 2025 with 590 megawatts (MW) of active data center capacity, an increase of 120 MW from Q2, and plans to add at least 1 gigawatt (GW) of capacity over the next 12 to 24 months [10][11] - CoreWeave operates in a highly supply-constrained environment, where demand for its AI cloud platform exceeds available capacity, positioning it favorably for continued growth [11][12] Stock Market Context - The S&P 500 index's bull market is three years old, suggesting a potential continuation into 2026, which could positively impact tech stocks, including CoreWeave [3][4] - The Nasdaq Composite index has surged 32% since April and is expected to maintain its rally into 2026, providing a conducive environment for CoreWeave's stock performance [4][5]