Should You Buy CoreWeave Stock Before May 7?

CoreWeave (NASDAQ: CRWV) has been one of the more underrated stocks in the market. It is posting incredible growth, has deep ties with Nvidia (NASDAQ: NVDA), and boasts several impressive clients, including Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META). However, the market has caught on to the investment thesis in recent weeks, and the stock has rallied by more than 70% since the start of April.

With gains of that kind in the rearview mirror, investors may be wondering if CoreWeave is still worth investing in. They may not have a ton of time to decide, as the company delivers its Q1 results on May 7, and that report could be the catalyst that causes CoreWeave to rise to even greater levels -- or to plunge, as it did after each of its last two reports. The stock is still more than 20% below the levels it was trading at in fall 2025.

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CoreWeave expects monster growth ahead

CoreWeave is a neocloud operator, which means it's similar to legacy cloud computing businesses, except that it's focused entirely on AI computing solutions. This allows it to set up its infrastructure in a different way, as it doesn't need to worry about incorporating a ton of storage or processors designed for less intensive tasks. CoreWeave offers its customers access to the best graphics processing units (GPUs) from Nvidia. That's why companies like Meta and Microsoft are with CoreWeave, as it allows them to gain access to more computing power without having to build it themselves.

It's seeing massive growth, with revenue rising 110% year over year in Q4. What's even more impressive is that its backlog increased 342% year over year, showcasing that demand for its services is expanding. Wall Street actually expects CoreWeave's revenue growth to accelerate throughout the year as more of its computing infrastructure comes online. The average analyst's estimate for its 2026 revenue growth is 143%.

That justifies CoreWeave's massive share price movement, but there is one thing investors need to watch out for.

Building AI infrastructure and installing cutting-edge GPUs in it is not cheap.

And unlike the primary cloud computing providers, CoreWeave doesn't have money sitting around from profitable legacy businesses to tap, so it has to borrow to fund its build-out. It recently announced a $1 billion offering of senior notes to raise capital, with a 9.75% interest rate. That high rate showcases that debt-holders view CoreWeave as a relatively risky business to lend to.

If CoreWeave can become profitable, then its growth rates will bring gains to those who buy now and hold on. However, there's no guarantee, and the company has a long road ahead. Based on the debt market's assessment -- as evidenced by the interest rate on its recent note offering -- the company's odds of success aren't great. So should you buy the stock before May 7? I think if the market's appetite for risk stays high, there's a good chance that CoreWeave could sustain its rally through May 7 and past it, making the stock a buy. If you're a bit more risk-averse, CoreWeave may not be the stock for you. However, investors need to keep an eye on this one due to its debt load, as things could go south in a hurry if its debt becomes too much to handle. If you're up for the risk, then CoreWeave is a buy with huge potential, but its success is far from guaranteed.

Keithen Drury has positions in Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.