The shares of CoreWeave rose by 92% in 2025, launching the company as the most high-profile artificial-intelligence initial public offering on Wall Street.
In the recent past (as of 23 February 2026), it trades at $90.97 and is enjoying a market capitalization of $47 billion; the research question that emerges is whether this GPU-cloud company can survive its trend as the AI boom continues.
AI Boom Fuels Growth
CoreWeave creates data-center infrastructure turnkey, which in effect serves as an arms-dealer to hyperscalers aspiring to implement AI compute.
Its 3rd-quarter backlog in 2025 was at $55 billion, which is a significant growth as compared to one year ago of only $15 billion bearing in mind high demands as training loads move to inference in robotics and autonomous agents.
Analysts can see the growth of revenue rising by a tremendous margin, towards $5 billion to $12 billion this year and to $19.5 billion by 2027, the highest growth in the market. Although the company’s 49.23% gross margin is a good place to start, it needs to hold or grow as revenue increases.
The main obstacle is that the $12–14 billion capital expenditure needed to deploy capacity creates a fixed cost burden that needs to be compensated for by increased revenue. .
Hidden Risks Loom Large
The presence of customer concentration is a major threat as most of the third-quarter revenue is maintained by four customers, among which are Microsoft and Meta. One retraction may have negative implications on findings.
The cash burn of over $8 billion in the four quarters contributed towards a huge debt of $18.5 billion in the long term and a weakening of shareholders due to issue of shares.
The company has a valuation of 8-9 times trailing sales that are similar to profitable peers and the company has little room to spare in the event that AI capital spending declines.
Expert Views Weigh In
Citi five-star analyst Tyler Radke gives a Buy rating and a target of $135, with expectations of an 88 for in-person projection supported by strong bookings over supply chain limitations. However, with law-naysayers, the focus is on the potential of execution and the debt issues.
Outlook
CoreWeave still stands on the knife edge; however, the capabilities of AI can give tremendous boost, should its implementation be sound. Investors should wait until prices are lowered or have been diversified because the risk profile in investment is high and therefore should be cautious before they invest.