CoreWeave Stock Price Prediction: Better-Than-Expected Earnings Send Stock Surging Over 15%, CRWV Could Reach $200

Financial results showed that CoreWeave's second-quarter revenue reached $2.575 billion, up 112% year-over-year from $1.212 billion in the same period last year, and slightly beating market expectations of approximately $2.555 billion, marking its fifth consecutive quarter of record revenue.

Notably, as of the end of June, the company's revenue backlog reached approximately $104 billion, a figure that does not yet include more than $25 billion in new customer commitments added at the start of the third quarter. This indicates high visibility for the company's future revenue as Meta, OpenAI, and other AI clients continue to ramp up computing power purchases.

Meanwhile, CoreWeave's compute infrastructure continued to expand. In the second quarter, it added nearly 500 MW of active power capacity, bringing total active capacity to 1.5 GW, while contracted power capacity reached approximately 3.7 GW. The company also completed the initial deployment validation of Nvidia (NVDA)'s Vera Rubin NVL72, preparing infrastructure in advance for the large-scale entry of next-generation AI chips into the cloud computing market.

On the profitability front, significant pressure remains. CoreWeave recorded a net loss of $626 million in the second quarter, compared with a loss of $290 million in the same period last year; loss per share was $1.14, though better than Wall Street's loss expectation of approximately $1.20 per share. The company's interest expense reached $640 million, up significantly from $267 million a year earlier, reflecting that financing costs driven by large-scale data center construction remain high.

However, operational profitability was better than market expectations. The company's adjusted EBITDA reached $1.51 billion, up approximately 101% year-over-year; adjusted operating profit reached $128 million, nearly double analysts' previous expectations, which was one of the key drivers behind the rapid rise in stock price after the earnings release.

Whether CoreWeave's stock price can continue to rise in the future depends first on whether its $104 billion order backlog can be smoothly converted into revenue.

The company's biggest fundamental advantage remains the demand for AI computing power. Beyond existing orders, it secured over $25 billion in new customer commitments at the start of the third quarter, demonstrating that procurement demand for GPU computing power from large AI labs, technology companies, and enterprises remains strong. CEO Michael Intrator stated that the company entered an important inflection point this quarter, as scale expansion began converting into stronger operating leverage while enterprise AI adoption continues to expand.

Ahead of the earnings report, 11 of the 14 analysts tracked by Investopedia assigned a "Buy" rating, with an average price target of around $147. The market's bullish logic is primarily built on AI computing power demand and the rapid growth of CoreWeave's orders.

However, CoreWeave also faces risks. Bank of America and Oppenheimer both previously pointed out that while GPU computing power demand remains strong, the pace of data center construction, infrastructure deployment, and margin improvement are key variables affecting the company's valuation.

For investors, it is worth noting that CoreWeave's second-quarter interest expense reached $640 million, surpassing even its net loss of $626 million for the same period. The company also needs continuous financing to build AI data centers; if future capacity online speeds fall below plan, high interest expenses and depreciation costs could continue to suppress profits.

If revenue maintains rapid growth in the coming quarters and adjusted operating margins gradually improve, the market may further raise CoreWeave's valuation. Conversely, if data center construction delays slow down order fulfillment, high debt and capital expenditure pressures could once again become a major drag on the stock price.

CRWV weekly stock price chart, Source: TradingView

From the weekly chart of CRWV's stock price, the overall candlestick pattern has repeatedly retested the $70 mark, but closing prices have never fallen below $70, indicating that the stock has formed a bottom with extremely strong support at this level. In late July, the stock price retested $70 again, with the weekly closing price still holding above it, driving a 26.33% surge last week. This has significantly boosted bullish momentum in the market, and the stock price may continue its upward trend in the short term.

Following the release of its latest earnings report, CRWV's post-market stock price briefly rose to near $104.52. If the stock can maintain its post-earnings gains during regular trading hours and hold firmly above $100, upside potential toward $120 will open up. Further up, attention should be paid to the resistance level at $150; a further breakthrough above this level could see the stock test the $200 mark.

On the downside, the primary support level to watch below is the $80-$85 range. If the stock price falls below $80, it may continue downward to test the $70 mark.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.