CoreWeave Surges As Microsoft, OpenAI Deals Fuel Revenue Spike, Wall Street Boost

Core Points - Wall Street analysts have raised their price targets for CoreWeave Inc, with JPMorgan increasing it from $43 to$ 66 and Needham from $55 to$ 78, reflecting positive sentiment following the company's strong earnings report [1][2] Financial Performance - CoreWeave reported first-quarter revenue of $981.63 million, surpassing analyst expectations of$ 859.77 million, but recorded an adjusted loss of $1.49 per share [2] - The company generated 98% of its revenue from committed contracts, with only 2% from on-demand services, indicating a disciplined approach to capital deployment [9] Customer Concentration - Microsoft accounted for 72% of CoreWeave's total revenue in the first quarter, significantly increasing from 10% in the previous year, contributing$ 707 million [7] - The remaining revenue grew by 117% to $275 million, with no other customer exceeding 10% of total revenue [7] Contracts and Future Revenue - CoreWeave has a significant contract with OpenAI worth up to$ 11.9 billion, which is not yet included in the company's RPO balance due to accounting treatment considerations [4][10] - An additional commitment from OpenAI to pay up to $4 billion through April 2029 was signed in May 2025, expected to be reflected in future revenue reports [8] Revenue Backlog and Projections - CoreWeave's cRPO increased by 4% sequentially to$ 8.5 billion, while long-term RPO declined by 11% to $6.2 billion [10] - Analysts project fiscal 2025 revenue of approximately$ 5 billion, with adjusted EPS estimates ranging from $(0.98) to$ (1.23) [6][11]