Up Over 30% This Year, This AI Infrastructure Play Is Just Getting Started

Core View - CoreWeave has experienced significant growth, with its stock increasing over 30% in 2026, indicating a strong position to benefit from rising AI spending [1][2] Company Overview - CoreWeave operates data centers equipped with advanced Nvidia chips, allowing clients to rent computing power for AI model training and execution, similar to cloud computing models [4] - Major clients include Meta Platforms, Microsoft, and OpenAI, who utilize CoreWeave's services despite building their own data centers due to current limitations in computing power and the need for scalable solutions [5][6] Financial Performance - In Q3 2025, CoreWeave's revenue surged by 134% year-over-year, with Wall Street analysts forecasting an 83% revenue growth for 2026, reflecting strong demand for its computing services [7] - Despite the revenue growth, CoreWeave has not yet achieved profitability, facing losses each quarter, although the situation is improving [7][9] Market Dynamics - The demand for CoreWeave's computing power is substantial and increasing, driven by the limitations of existing computing hardware and the need for flexible scaling by clients [6][9] - If CoreWeave can achieve profitability in 2026, it is expected that the stock could see significant appreciation, while failure to do so may lead to investor caution [9]