EPS Watch: Can CoreWeave Keep Riding the AI Spending Wave?

Core Insights - CoreWeave has successfully transitioned from a crypto mining company to a significant player in the AI infrastructure sector, capitalizing on the growing demand for AI computing resources [6][7] - The company was originally founded as 'Atlantic Crypto' and thrived during the crypto boom, but pivoted to AI following the 2018 crypto market crash [1][2] Company Transformation - After the crypto market downturn, the company rebranded to CoreWeave in 2019, recognizing the potential of the AI revolution [2] - CoreWeave possesses essential assets for AI, including multiple data centers and access to Nvidia H100 chips, enabling it to provide cloud computing infrastructure for training large language models [3] Earnings Preview - CoreWeave is set to report its third earnings results as a public company on November 10, with Wall Street expecting revenue of $1.28 billion and an EPS of -$0.39 [4] - The stock is anticipated to experience significant volatility, with an expected post-earnings move of approximately 18% [4] AI Spending Sustainability - A key concern for CoreWeave is the sustainability of the substantial capital expenditures associated with AI, highlighted by recent discussions in the industry regarding spending commitments [5] - Major players like Meta Platforms have secured significant financing for data center investments, indicating a competitive landscape for AI infrastructure [5] Market Position - As an early mover in the AI infrastructure space, CoreWeave has optimized its platform for specialized AI needs, offering competitive performance at lower costs [3] - The company's ability to secure multi-billion-dollar contracts from major tech firms underscores its critical role in the AI boom [5]