Down 55% From Its High: Is CoreWeave the Best AI Stock to Buy Right Now?
Key Points
CoreWeave’s business is firing on all cylinders, but it’s burning a lot of cash.
Its stock still looks cheap relative to its long-term growth potential.
- 10 stocks we like better than CoreWeave ›
CoreWeave (NASDAQ: CRWV), a provider of cloud-based AI infrastructure services, went public at $40 per share on March 28, 2025. It soared in the first three months and closed at a record high of $183.58 on June 20. But as of this writing, it trades at about $82.
CoreWeave's stock was cut in half amid steep losses, high debt, and pricey expansion plans that overshadowed its explosive revenue growth. But does that pullback represent a good buying opportunity for investors who expect its business to keep growing?
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How fast is CoreWeave growing?
CoreWeave was once an Ethereum (CRYPTO: ETH) miner, but it abandoned that business model after the 2018 cryptocurrency crash. It repurposed those GPUs to remotely run AI tasks and built additional data centers to serve the expanding AI market.
By installing Nvidia's (NASDAQ: NVDA) top-tier H100 and Blackwell GPUs across its cloud-based, AI-optimized servers, CoreWeave can process certain AI tasks 35 times faster and 80% cheaper than larger and more diversified cloud infrastructure platforms like Amazon (NASDAQ: AMZN) Web Services (AWS) and Microsoft (NASDAQ: MSFT) Azure.
That made CoreWeave's cloud-based AI infrastructure platform a popular option for companies that wanted to run the latest AI applications without installing their own on-site servers. To meet that demand, CoreWeave expanded its network from just three data centers at the end of 2022 to 43 data centers with an active capacity of 850 MW at the end of 2025.
CoreWeave's revenue surged from $16 million in 2022 to $5.1 billion in 2025. But during those three years, its annual net losses widened from $31 million to $1.2 billion. Its high debt-to-equity ratio of 13.8 at the end of 2025 leaves it little room to raise additional cash.
Is CoreWeave the right stock to buy right now?
From 2025 to 2028, analysts expect CoreWeave's revenue to rise more than sixfold to $33.5 billion, while its net loss narrows to $256 million. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to surge sevenfold to $21.7 billion -- but that figure excludes some key expenses of building, running, and maintaining data centers.
Yet with an enterprise value of $35.7 billion, CoreWeave looks surprisingly cheap at 7 times this year's sales and 12 times its adjusted EBITDA. Nvidia also nearly doubled its stake in CoreWeave earlier this year by investing another $2 billion in the company.
CoreWeave is still a high-risk, speculative growth stock. But if you expect its aggressive expansion plans to pay off as the AI boom continues, then it's worth nibbling on right now.
Should you buy stock in CoreWeave right now?
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Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Ethereum, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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