While software stocks remain under pressure and the majority of the Magnificent Seven continue to trail the broad market, investors going all-in on the rotation into defensive sectors—such as energy and utilities—may be missing out on certain corners of the tech sector that are proving to be resilient.
That is particularly true of the AI cloud computing space, some of which has been hiding in plain sight after headlines about mounting concerns over the hyperscalers’ CapEx have overshadowed companies worthy of investors’ consideration.
Since its March 28, 2025, initial price offering (IPO), perhaps no company in the space gets less attention than it deserves than CoreWeave (NASDAQ: CRWV). But the stock, which has gained more than 142% since its IPO, is still on analysts’ radar ahead of its next earnings call.
A Cloud Infrastructure Provider With Massive Backing From NVIDIA
What CoreWeave offers is not unique. But the Livingston, New Jersey-based company has found a way to turn its principal offerings into a high-growth revenue generator after having to reinvent itself in the wake of 2018’s crypto winter.
Founded as Atlantic Crypto a year prior to the crash, CoreWeave initially focused its graphics processing units (GPUs) on mining Ethereum (ETH) at an industrial scale. But after crypto tanked, CoreWeave was forced to pivot.
Now the company is a provider of GPU-accelerated cloud infrastructure.
CoreWeave’s services are designed to support compute-intensive workloads for AI, machine learning, visual effects, and other high-performance computing applications.
The company is doing so with the help of the world’s largest company, NVIDIA (NASDAQ: NVDA). As a GPU-as-a-Service provider, CoreWeave offers customers access to its massive fleet of NVIDIA GPUs on demand.
That arrangement is intentional. NVIDIA owns shares of CRWV as part of its investment portfolio, with CoreWeave being the semiconductor company’s biggest holding. In fact, on Jan. 26, NVIDIA announced that it had invested an additional $2 billion in CoreWeave Class A common stock to help the company achieve its infrastructure buildout goals.
Specifically, NVIDIA’s press release noted an “expansion of their long-standing complementary relationship to enable CoreWeave to accelerate the buildout of more than 5 gigawatts of AI factories by 2030 to advance AI adoption at global scale.”
Those ambitions will build upon CoreWeave’s existing data centers, which are located across the United States, Canada, and Europe.
While CoreWeave’s offerings may be similar to Amazon’s (NASDAQ: AMZN) AWS, Microsoft’s (NASDAQ: MSFT) Azure, or Alphabet’s (NASDAQ: GOOGL) Google Cloud, those stocks have largely struggled over the past year as their CapEx continues to surge while not having the financial backing of a behemoth like $4.61-trillion market cap NVIDIA.
Revenue Concentration Could Pose a Risk
CoreWeave has not yet achieved GAAP profitability, but it has undergone notable revenue growth, including a nearly 134% year-over-year (YOY) increase in quarterly revenue in Q3 fiscal year 2025, when it reported revenue of $1.36.
That third quarter also marked the first time CoreWeave beat on earnings, reporting a loss of 22 cents versus analyst expectations of a 36-cent loss. With nearly $56 billion in revenue backlog, the company will also look to build upon the nearly 74% YOY increase in adjusted operating income it saw in Q3.
Since the start of 2023, CoreWeave has grown its revenue by an average annual rate of nearly 736%. On a trailing 12-month basis, the company’s top line exceeds $4 billion.
But its sources of revenue could raise a red flag. CoreWeave has a heavily concentrated customer base. In 2024, Microsoft accounted for 62% of its revenue. To put that into context, Microsoft was responsible for approximately $1.2 billion of CoreWeave’s $1.9 billion in 2024 revenue.
Another source of revenue concentration comes from ChatGPT maker OpenAI. After expanding its agreement by $6.5 billion in September 2025, OpenAI now has contracts totaling more than $22 billion with CoreWeave.
After Market-Leading Gains, Here’s What Wall Street Thinks About CoreWeave
Based on 31 analysts who cover the stock, CRWV receives a Moderate Buy rating and an average 12-month price target $127.27, suggesting more than 31% potential upside despite shares gaining 142% over the past year.
Current short interest is worth noting at 8.53%, or nearly 33 million shares of the more than 386 million shares outstanding. But over the past 12 months, institutional buyers have outnumbered institutional sellers 540 to 74, with inflows of $8.78 billion nearly doubling outflows of $4.64 billion.
Meanwhile, over the past month, the stock has been upgraded to Overweight by Wells Fargo, from Hold to Buy by Deutsche Bank, and from Neutral to Buy by DA Davidson.
CoreWeave will report full-year 2025 and Q4 earnings on Feb. 26 during after-hours trading.
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The article "Ahead of Q4 Earnings, CoreWeave Is Up 142% Over the Past Year" first appeared on MarketBeat.
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