PresentationKarl KeirsteadUBS Investment Bank, Research Division Okay. Great. Thank you, everybody. I'm Karl Keirstead. We've got Tim Arcuri, who covers NVIDIA and honored to have Nick Robbins of CoreWeave here. Today has been a fun day for me because this has been the theme of today, partly by design, but we had Navios on stage earlier today. We just got off stage with Crusoe and Lanci Lancium who are building out the next star gates. Now we've got Nick to talk through CoreWeave story shortly afterwards, I ...

Core View - Evercore ISI reaffirmed its Outperform rating and $175.00 price target on CoreWeave Inc., highlighting the company's strong unit economics and scalable business model despite profitability concerns in the GPU cloud sector [1] Investor Concerns - The firm addressed investor concerns regarding Oracle's GPU cloud margins, stating that CoreWeave's approach remains sustainable and profitable even with heavy depreciation [2] - Key factors supporting CoreWeave's economics include multi-year, noncancelable take-or-pay contracts averaging four to five years, prepayment structures covering 15–25% of total contract value, and near-total revenue from reserved capacity [2] Strategic Partnerships - CoreWeave's agreement with NVIDIA provides a safety net, obligating NVIDIA to purchase any unused GPU capacity through 2032 [3] - Management believes that GPUs can remain productive for over six years, citing ongoing use of older Volta units and demand for multi-year Grace Blackwell contracts [3] Financial Projections - Analysts estimate that a $3.2 billion total contract value deal could generate approximately $1 billion in capital expenditures, yielding 40–50% incremental EBIT margins and up to 70% incremental EBITDA margins once deployed [4] - CoreWeave's current mid-teens margin profile is attributed to aggressive reinvestment for growth, with expectations for material margin expansion as scale improves [4]

Group 1: CoreWeave - CoreWeave is an AI stock backed by Nvidia, which has become the largest holding in Philippe Laffont's portfolio, accounting for 8% [2] - The company reported a revenue surge of 207% to $1.2 billion in the second quarter, with non-GAAP operating income increasing 135% to $200 million [9] - CoreWeave's revenue backlog increased by 86% due to expanded contracts with OpenAI and a major hyperscale customer, likely Microsoft or Alphabet [9] - The company has a substantial amount of debt due to its rapid expansion of AI data centers, with interest expenses erasing over 20% of revenue in the second quarter [10] - Wall Street expects CoreWeave's revenue to grow at an annual rate of 90% through 2027, making its current valuation of 15 times sales appear reasonable [11] Group 2: Amazon - Amazon holds a significant market share, accounting for over 40% of U.S. e-commerce sales and 15% of digital ad spending, while AWS represents 30% of cloud infrastructure spending [3] - The company reported second-quarter financial results that exceeded estimates, with revenue rising 13% to $167 billion, driven by strong growth in advertising and cloud services [5] - Amazon's operating margin expanded by 1.5 percentage points, and GAAP net income increased by 33% to $1.68 per diluted share [5] - Wall Street estimates that Amazon's earnings will grow at an annual rate of 18% over the next three years, making its current valuation of 34 times earnings seem fair [6] Group 3: AI Industry - AI has become integral to growth strategies across various sectors, including retail, advertising, and cloud computing, enhancing inventory management, demand forecasting, and campaign creation [4] - CoreWeave is recognized as a leader in the emerging GPU cloud sector, specifically designed for AI workloads, distinguishing itself from traditional cloud providers [7] - The close partnership with Nvidia provides CoreWeave with early access to the latest GPUs, enhancing its competitive edge in the AI cloud services market [8]