CoreWeave (NASDAQ: CRWV) has made significant strides since going public less than a year ago, with its stock rising an impressive 123% since trading began in March 2025. Although the neocloud infrastructure company enjoyed a remarkable surge of over 300% by June 2025, it has faced headwinds, currently down 51% from its 52-week peak.
The decline in CoreWeave’s stock price can be attributed to growing concerns about the sustainability of large investments in artificial intelligence (AI) infrastructure, sparking fears of a possible bubble within the sector. CoreWeave specializes in operating dedicated AI data centers that leverage Nvidia’s graphics processing units (GPUs) to meet the burgeoning demand in the market.
Despite these challenges, many analysts are questioning whether this dip represents a buying opportunity for investors. CoreWeave operates in a market characterized by supply constraints, where the demand for AI data centers significantly outstrips current availability. In the third quarter of 2025, CoreWeave managed to increase its active data center capacity by 120 megawatts (MW), bringing the total to 590 MW. Furthermore, it has expanded its potential data center pipeline by more than 600 MW, raising its contracted power capacity to an impressive 2.9 gigawatts (GW).
CoreWeave’s CEO, Michael Intrator, expressed optimism about the company’s future, stating it is well-positioned for growth, with over 1 GW of contracted capacity expected to become operational within the next 12 to 24 months. This anticipated expansion should pave the way for a significant increase in revenue, projected to rise from $5.1 billion in 2025.
Additionally, it’s worth highlighting that CoreWeave’s revenue backlog far exceeds the expected earnings for the next two years. By the end of Q3 2025, the company boasted a backlog of nearly $56 billion, fueled by substantial contracts with major clients like Meta Platforms and OpenAI. This backlog is nearly double the total revenue analysts predict CoreWeave will generate in 2026 and 2027, showcasing the company’s robust position in the AI data center market.
As the demand for AI infrastructure continues to grow, CoreWeave seems poised for a potentially transformative journey. With its strategic capacity expansion and strong contracts in place, the company may emerge as a driving force in the evolving landscape of technology and data management.