Core AI Stocks Overview - AI stocks are experiencing significant upward momentum, with Nvidia being a standout performer, having increased nearly 1,500% from its 2022 low [1][2] - The focus is on identifying stocks that could replicate Nvidia's success, with expectations for substantial growth in the AI sector by 2026 [2] CoreWeave Analysis - CoreWeave has seen a volatile trading history since its March debut, with a peak followed by a nearly 60% decline [4] - The company specializes in cloud infrastructure tailored for AI workloads, distinguishing itself from established platforms like AWS and Azure [4] - Grand View Research projects a 32% compound annual growth rate (CAGR) for the AI market through 2033, which could benefit CoreWeave's future [5] - In Q3 2025, CoreWeave reported revenue of nearly $1.4 billion, a 134% increase year-over-year, despite a net loss of $110 million [6] - The company's price-to-sales (P/S) ratio is just over 7, comparable to levels before its recent stock surge [6] - Anticipated revenue growth of 136% for 2026 aligns with Q3 2025 performance, supported by $1.9 billion in liquidity [8] Advanced Micro Devices (AMD) Insights - AMD is making strides in the AI accelerator market, particularly with its MI350 accelerators, as it seeks to catch up to Nvidia [9][10] - The company projects a 35% revenue CAGR over the next three to five years, with data center business growth expected to exceed 60% annually [10] - In Q3 2025, AMD's revenue grew 36% to over $9.2 billion, with 47% from the data center segment [11] - Net income for Q3 reached over $1.2 billion, a 61% increase from the previous year, indicating strong profit growth [12] - AMD's stock has shown volatility but has increased nearly 60% over the past year, suggesting positive market sentiment [12][15]

Core View - Applied Digital and CoreWeave are both focusing on AI infrastructure but from different approaches [1] Company Summaries - Applied Digital is leveraging its resources to enhance AI infrastructure capabilities [1] - CoreWeave is also making strides in AI infrastructure, indicating a competitive landscape [1]

Core Points - CoreWeave, Inc. (NASDAQ:CRWV) experienced a significant share price increase of 20.8% week-on-week, driven by investor optimism regarding its subsidiary's investment in an AI software developer [1][3] - CoreWeave Ventures participated in a seed investment round for Numerata, which focuses on enhancing developer productivity and minimizing costly errors through custom model training and a low-latency autocomplete backend [2][4] - The Chief Development Officer of CoreWeave highlighted Numerata's innovative approach in AI, emphasizing their capability to transform ambitious ideas into tangible breakthroughs [3] Investment and Product Insights - Numerata's product, NinetyFive, addresses key challenges in software development by allowing developers to utilize AI-driven innovations while ensuring privacy and control over proprietary codebases [4] - Compared to other cloud services, Numerata offers secure custom model training, enabling enterprises to train models on private codebases and deploy them effectively for their developers [4]

Group 1 - The demand for AI compute is a positive indicator for the AI infrastructure market [1] - Recent updates have been discussed regarding Advanced Micro Devices (AMD) and CoreWeave (CRWV) along with other AI stocks [1] - Stock prices referenced are from the after-market on December 3, 2025 [1]

Core Insights - CoreWeave (CRWV) has experienced a remarkable revenue growth of 134% year-over-year, reaching $1.4 billion in Q3 2025, while its entry into the federal market is a significant development [1][10] Expansion into Federal Market - CoreWeave has launched CoreWeave Federal, aimed at providing AI cloud services to U.S. government agencies and the defense industrial base, ensuring compliance with cybersecurity standards [2] - Early adoption by NASA's Jet Propulsion Lab demonstrates the platform's capabilities and potential for broader use across various federal agencies [3] Market Opportunity - The entry into the public sector expands CoreWeave's addressable market at a time when AI adoption is accelerating, particularly among government agencies focused on an AI-first strategy [4] - CoreWeave ended Q3 with a substantial backlog of $55.6 billion, including $50 billion in Remaining Performance Obligations (RPO), indicating strong future demand [5] Infrastructure and Capacity - CoreWeave operates nearly 590 megawatts of active power and has 2.9 gigawatts of contracted capacity, with over 1 gigawatt available for future sales, making it well-positioned for long-term federal contracts [6] Competitive Landscape - The AI infrastructure market is highly competitive, with established players like Microsoft and emerging companies like Nebius vying for market share [7] - Microsoft has a strong foothold in the public sector with its Azure for US Government, which is tailored for federal workloads and has critical accreditations [11] - Nebius has shown rapid revenue growth of 355% year-over-year, but its federal market penetration is still developing compared to Microsoft [12] Financial Performance - CoreWeave's shares are trading at a Price/Book ratio of 10.8X, significantly higher than the Internet Software industry's ratio of 5.82X, with shares down 19.8% over the past month [14]

Core Business Overview - CoreWeave is a cloud computing service provider focused on delivering high-performance AI computing hardware, primarily utilizing Nvidia GPUs, which are expensive [3][4] - The company is currently not profitable, with significant capital expenditures (capex) of approximately $2 billion per quarter, while generating quarterly revenue of $1.4 billion, reflecting a year-over-year sales increase of 134% [4][9] Financial Performance - CoreWeave's free cash flow (FCF) over the past 12 months is negative $8 billion, despite generating $4.3 billion in revenue, indicating severe financial strain [9] - The company's market capitalization stands at $43 billion, with a current stock price of $6.47, having experienced a high of $85.83 [5][6] Market Position and Challenges - The company faces challenges in achieving profitability, as the lifespan of GPUs used for AI training is relatively short, estimated between one to five years, leading to ongoing financial losses [6][7] - CoreWeave's pricing strategy may need adjustment to improve profitability, but increasing prices could risk losing customers to competitors [7][8] Investment Outlook - The current investment sentiment towards CoreWeave is cautious, with the stock down 60% from its highs, and the company is viewed as needing significant changes to become a viable business [11] - Until there is tangible progress towards profitability, CoreWeave is considered a company to monitor rather than an attractive investment opportunity [11]

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aeros ...

After making a huge profit in CoreWeave, Laffont sees an opportunity in an AI leader.Billionaire Philippe Laffont has his finger on the pulse of big tech trends like artificial intelligence (AI). That's led him to make some stellar investments over the past few years, producing market-beating returns as AI has fueled the current bull market.One of Laffont's most successful investments in his hedge fund, Coatue Management, in 2025 was CoreWeave (CRWV +7.86%). The cloud computing business became the fund's la ...

Core Company Insights - CoreWeave (CRWV) has rapidly gained recognition in the AI sector due to its significant allocation of valuable GPUs, leading to remarkable growth [1] - The stock has experienced volatility recently, indicating fluctuations in market perception or performance [1] Analyst Profile - Julian Lin is a financial analyst focused on identifying undervalued companies with long-term growth potential, emphasizing strong balance sheets and management teams [1] - He leads the investing group Best Of Breed Growth Stocks, which shares stock positions with a high probability of outperforming the S&P 500 [1] - The investment strategy combines growth principles with strict valuation criteria to enhance the margin of safety [1] Investment Features - The investment group offers exclusive access to high-conviction stock picks, comprehensive research reports, real-time trade alerts, macro market analysis, and individual industry reports [1] - Members also receive a filtered watchlist and community chat access to the analyst 24/7 [1]

Group 1 - SuRo Capital's position in CoreWeave is set to be closed out at a significantly lower realized gain due to the collapse of the cloud computing company [1] - This situation may lead to near-term returns for the equity market, which is characterized by daily price fluctuations that can result in substantial wealth creation or destruction over the long term [1] - Pacifica Yield aims to focus on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]