High-growth tech stocks often move fast, sometimes too fast for cautious investors. And when a company goes public with a splash, picks up big-name clients, and posts triple-digit gains within weeks, it naturally draws both admiration and skepticism. That’s exactly what’s happening with CoreWeave (CRWV).

Since its IPO in late March, CoreWeave shares have soared over 200% over the past month, fueled by better-than-expected earnings, a high-profile client win with Google (GOOGL), and rising momentum in AI infrastructure demand. Backed by Microsoft (MSFT), OpenAI, and a $2 billion investment from Nvidia (NVDA), CoreWeave is positioning itself as a next-gen powerhouse in AI cloud computing. However, short interest has also skyrocketed, suggesting rising doubt about sustainability and profitability.

CRWV is now trading at nearly double its average price target. So the big question remains: Is this a breakout still in its early innings, or a rally running on borrowed time? Let’s take a closer look.

The Pure AI Play

CoreWeave (CRWV) is a U.S.-based cloud computing company currently valued at $49 billion. The firm specializes in AI-focused infrastructure, offering powerful computing solutions designed specifically for training and running AI models. Unlike traditional cloud services, CoreWeave builds systems that handle the intense demands of artificial intelligence. It operates 32 data centers with around 250,000 GPUs. The company partners with chipmakers and software firms to deliver reliable, high-performance AI infrastructure. Long-term customer contracts help fund growth, including GPU purchases and new data center leases.

CoreWeave offers cloud services built to run powerful AI and computing tasks. Unlike big providers like Amazon (AMZN) or Microsoft, CoreWeave focuses on using GPUs, special computer chips that handle tough jobs fast. For example, it was among the first to offer Nvidia’s powerful GB200 chips. 

Coreweave Delivered Strong Q1 Results

CoreWeave opened 2025 with robust Q1 results, posting 420% revenue growth of $981 million. Most of that came from its GPU compute services, accounting for about 85%, with network and storage solutions adding 10%, and software orchestration making up the remaining 5%.

However, CoreWeave showed a $314.6 million net loss, larger than last year’s $129.2 million shortfall. That reflected ramped-up infrastructure spending and a one-off $177 million stock-based compensation hit tied to its IPO. Despite widening the net loss, the company managed to increase its EBITDA to $606.1 million with a 62% margin, up from 55% last year.

Analysts project CoreWeave’s 2025 revenue to be approximately $5.03 billion, aligning closely with the company's own guidance of between $4.9 billion and $5.1 billion. The consensus estimate for adjusted EPS is a loss of $1.19.

To stay on track, CoreWeave must balance heavy spending with strong cash generation. Its planned $20 billion to $23 billion in 2025 capex will test how well it manages costs, supply chains, and interest expenses, which ran at 27% of Q1 revenue. Growing high-visibility contracts, like the $11.9 billion OpenAI deal, will be key. If it hits its guidance and continues adding cutting-edge GPUs, CoreWeave can turn its current growth story into a long-term win.

What Do Analysts Think About Coreweave Stock?

On May 21, Citi doubled its price target for CoreWeave, raising it from $43 to $94, following the company’s $4 billion deal with OpenAI.

Overall, Wall Street analysts are moderately bullish on CoreWeave, as reflected in the consensus “Moderate Buy” rating for the stock. Out of 18 analysts, seven have a “Strong Buy,” one a “Buy,” nine a “Hold,” and one a “Strong Sell” rating.

The stock is currently trading at nearly twice its average price target and 25% above the Street-high target of $94. This suggests there is significant downside risk, according to analysts.

The Bottom Line

With its impressive demand and revenue growth, CoreWeave is undoubtedly heading toward becoming a leader in AI. However, the company still needs to become profitable to prove its long-term sustainability and justify its premium valuation.