CoreWeave stock slips — CEO explains why

Core Viewpoint - Coreweave reported a 134% year-over-year increase in sales for the third quarter, yet its stock fell by approximately 16% due to lowered revenue guidance [1][2]. Company Performance - Coreweave is an AI infrastructure provider that supplies data centers with servers equipped with NVIDIA chips for major companies like Microsoft, Meta, and OpenAI [2]. - The company has diversified its client base significantly, reducing reliance on a single client from 85% to below 35% [14]. - Coreweave's backlog has increased to between $50 billion and $55 billion, marking a rapid growth in demand for its services [14]. Revenue Guidance and Forecast - The company lowered the top end of its full-year revenue guidance by about $200 million due to delays in a third-party data center construction [2][3]. - The delays are attributed to global supply chain issues affecting the construction of large-scale data centers [5][10]. Supply Chain Challenges - The construction of data centers requires extensive coordination among various trades, leading to stress on supply chains and potential delays [5][6]. - Coreweave has established an internal organization to build infrastructure independently, aiming to mitigate future supply chain disruptions [10][12]. Market Demand - Despite the stock decline, there is no observed slowdown in demand for Coreweave's services, which remains "incredible" according to the CEO [13][16]. - The company has received recognition for its software solutions, winning a platinum level award for the second consecutive year [15].