CoreWeave's Upbeat Outlook: Are Expanding Data Centers at the Core?

Core Company Insights - CoreWeave, Inc. has raised its full-year revenue outlook for 2025 to a range of $5.15 billion to $5.35 billion, an increase of $250 million from previous guidance, driven by strong customer demand and rapid data center expansion [1][10] - The company closed the second quarter with 470 megawatts (MW) of active power and aims to deliver over 900 MW by year-end, supported by a $6 billion data center investment in Lancaster, PA, and a joint venture in Kenilworth, NJ [2][10] - CoreWeave's contracted backlog reached $30.1 billion, doubling year-to-date, fueled by demand from enterprises and AI startups [3][10] Financial Performance - In the last reported quarter, CoreWeave's revenue surged 207% to $1.2 billion, with adjusted operating income increasing 134% to $200 million [5] - Management anticipates third-quarter revenues between $1.26 billion and $1.30 billion, with adjusted operating income projected at $160 million to $190 million [6] Market Trends and Competition - The global AI infrastructure market is expected to grow from $60.23 billion in 2025 to $499.33 billion by 2034, at a CAGR of 26.6%, indicating a robust demand for AI infrastructure [4] - CoreWeave faces competition from emerging companies like Nebius Group N.V., which is rapidly expanding its AI infrastructure capacity and has increased its 2025 ARR guidance [7] Valuation Metrics - CoreWeave shares have gained 130.9% over the past year, outperforming the Internet Software industry's growth of 39.1% [11] - The current Price/Book ratio for CoreWeave is 15.93X, significantly higher than the industry average of 6.47X [12]