Plenty of investors out there dream of discovering a rare stock that can yield a stellar, tenfold return. However, to reach that goal, a company must grow revenue and profitability at extraordinary rates. It is also essential that a company operates in a market that is large enough to support such growth. Artificial intelligence (AI) is one of the few booming industries today that can realistically drive companies to a tenfold increase in the next decade.
I believe CoreWeave (CRWV 9.38%) is an AI stock with the potential to grow its share price 10x over the next decade. With a current market capitalization of about $66 billion, the company would need to be valued at $660 billion by the mid-2030s to deliver a 10x return. Although this prediction seems aggressive, it is definitely not implausible.
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CoreWeave needs stellar financial performance and a robust pipeline
CoreWeave's revenue surged 207% year over year to top $1.2 billion in the second quarter of fiscal 2025 (ending June 30). Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also more than tripled year over year to $753 million, while adjusted EBITDA margins were an impressive 62%.
NASDAQ: CRWV
Key Data Points
CoreWeave also ended the second quarter with $30.1 billion in contracted backlog, double what it held at the start of 2025. That backlog offers vital clues to the company's impressive revenue potential over the next several years. The contracted pipeline includes a $4 billion contract expansion with OpenAI, contract expansions with two hyperscaler customers, and new customer wins, including large enterprises and AI start-ups.
Based on this strong demand, management now expects fiscal 2025 revenue to be in the range of $5.15 billion to $5.35 billion, and adjusted operating income in the range of $800 million to $830 million.
Scaling data center capacity
The AI cloud market is supply-constrained at the moment, with demand growing much faster than available capacity. CoreWeave CEO Michael Intrator claimed that the biggest challenge in building new data center capacity is securing powered shells (data center buildings already connected to the electrical grid and capable of handling massive power loads), which are necessary to support the infrastructure at the scale customers require.
CoreWeave is investing aggressively to expand its data center footprint. The company concluded the second quarter with nearly 470 megawatts of active power (capacity online and operational in data centers) and increased its total contracted power (capacity secured for future build-outs) to 2.2 gigawatts. CoreWeave is now on track to deliver over 900 megawatts of active power by the end of 2025.
Vertical integration strategy
CoreWeave is pursuing vertical integration both up and down the stack to create operational and financial efficiencies. By owning data centers, the company aims to scale its infrastructure more quickly, while reducing its capital costs.
The proposed acquisition of Core Scientific is expected to position CoreWeave as one of the largest AI cloud platforms globally. The deal will add 1.3 gigawatts of gross power capacity, while making an incremental 1 gigawatt or more capacity available for future expansion. Once closed, the deal will also eliminate $10 billion in future lease liabilities and generate $500 million in annual savings by 2027.
CoreWeave has also completed the acquisition of Weights & Biases, which brought 1,600 new enterprise clients and added tools for full-stack observability and inference optimization. These capabilities are now integrated into CoreWeave's Mission Control system, which is used to manage the life cycle of data center clusters. Customers can monitor workloads end-to-end, including GPU usage, storage, and machine learning code. The new Weights & Biases inference product also gives customers greater control over compute capacity.
These AI initiatives are deepening customer stickiness across the platform
Deal with Nvidia
In September 2025, CoreWeave signed a $6.3 billion capacity agreement with Nvidia (NVDA 0.82%), under which the chip giant will purchase any unsold capacity through April 13, 2032.
NASDAQ: NVDA
Key Data Points
CoreWeave has already purchased massive amounts of Nvidia's GPUs, which are then rented to customers. Additionally, Nvidia owned nearly 7% of CoreWeave's Class A shares as of June 30. Hence, these companies already enjoy a close relationship.
CoreWeave is in a position to gain early access to Nvidia's advanced GPUs, such as the Blackwell portfolio, ensuring the AI cloud platform can meet the surging demand for complex AI workloads at scale and at lower costs. With Nvidia now guaranteeing utilization, CoreWeave faces limited downside risk and can continue with its aggressive build-out strategy.
Can CoreWeave grow 10x in the next decade?
If CoreWeave can compound revenue at 35% annually over the next decade, its top line could climb from about $5.25 billion (midpoint of guidance) in fiscal 2025 to nearly $105 billion by 2035. This may seem achievable if we consider that Visible Alpha analysts are expecting CoreWeave's revenue to grow at a compounded annual growth rate of 106% from 2024 to 2027.
At that scale, even applying a conservative 9x price-to-sales multiple, which is less than half of its current 18.4x, would imply a market capitalization of $949 billion -- far higher than the target of $660 billion. That would represent a more than tenfold increase from today's market capitalization. That sounds steep, but with the global AI infrastructure market estimated to be nearly $998 billion by 2035, it is definitely doable.
However, execution is critical. CoreWeave must continue to scale data center capacity despite power and GPU supply chain constraints. The company should also maintain high utilization levels through long-term contracts, while also handling its high debt levels and cost of capital. The $30 billion backlog offers significant revenue visibility for future years, while even older GPU clusters based on H100 or A100 are being recontracted for inference workloads. Competition from hyperscalers poses a considerable risk; however, with Nvidia guaranteeing capacity purchases and CoreWeave's vertical integration strategy reducing costs, the downside is somewhat mitigated.
CoreWeave is a high-risk, high-reward investment, especially since the company is currently unprofitable. Investors can consider taking a small stake in this stock to capture the potential upside if the growth story unfolds, but limit their downside risk if execution falters. And while the stock may or may not increase tenfold in the next decade, it is undoubtedly a brilliant pick for 2025.
