Shares of artificial intelligence (AI) infrastructure player CoreWeave (CRWV +1.95%) have gained over 231% so far in 2025. However, the company's growth story is far from over.
According to McKinsey & Company, global demand for data center capacity is expected to rise by nearly 2.7 times from 82 gigawatts in 2025 to 219 gigawatts in 2030. Of this, compute capacity needed for AI workloads is estimated to grow almost 3.5 times from 44 gigawatts in 2025 to 156 gigawatts in 2030. CoreWeave's purpose-built high-performance cloud capacity stands to benefit dramatically from this trend.
Here's why there's a good chance this growth stock triples over the next two years and becomes a top stock by the end of 2027.
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Capacity expansion and multiple billion-dollar partnerships
CoreWeave is focused on capacity expansions and strategic partnerships to ensure multi-year revenue visibility. The company ended the second quarter of fiscal 2025 (ending June 30, 2025) with 470 megawatts of active data center capacity. The company also expanded the contracted data center capacity from 600 megawatts to 2.2 gigawatts to expand its data center infrastructure. The company expects to expand data center capacity to 900 megawatts by the end of 2025.
NASDAQ: CRWV
Key Data Points
CoreWeave had a revenue backlog of $30.1 billion at the end of the second quarter, a dramatic improvement from $4 billion in the same quarter of the prior year. This order book included the multi-year GPU capacity deal with OpenAI and new expansion contracts with its two hyperscaler customers. Many enterprise clients and AI labs are also expanding their capacity commitments.
CoreWeave is also a significant beneficiary of Microsoft's $13 billion investment in neocloud providers (next-generation cloud infrastructure purpose-built for AI and high-performance computing workloads), along with Nscale and Lambda. Microsoft accounted for 71% of the company's revenues in the second quarter.
Recently, CoreWeave has been focusing on diversifying its revenue base. The company expanded its compute capacity deal with OpenAI by almost $6.5 billion, bringing its total contract value to $22.4 billion.
The company has also signed a $14.2 billion deal with Meta Platforms to supply compute capacity through Dec. 14, 2031. CoreWeave has signed a $6.3 billion deal with Nvidia, which guarantees that the latter will purchase any sold compute capacity through April 13, 2032. This has significantly reduced the company's downside risk associated with unused data center inventory.
Vertical integration strategy
CoreWeave is pursuing a vertical integration strategy to strengthen its hardware and software offerings. On the hardware side, the proposed $9 billion all-stock acquisition of Core Scientific can add the latter's 1.3 gigawatts of contracted and future data center capacity to CoreWeave's portfolio, with room for adding over 1 gigawatt of data center capacity in the U.S.
If completed, the deal is also expected to eliminate $10 billion of lease liabilities to be paid over next 12 years. While the acquisition will dramatically expand CoreWeave's available compute capacity, the ongoing disapproval among some of Core Scientific's shareholders, has created uncertainty around the deal.
CoreWeave has also strengthened its software stack by acquiring Weights & Biases, an AI developer platform, in May 2025. The deal has added 1,600 new clients to CoreWeave's customer base. The acquisition has enabled CoreWeave to offer an integrated observability feature within its cloud platform. Hence, it is easier for clients to identify factors affecting the performance and reliability of the AI workloads running on CoreWeave's data centers.
Software stack
CoreWeave's differentiated software stack, built atop its GPU infrastructure, is helping improve margins and create a sticky customer base. In October 2025, the company launched Serverless RL, the first publicly available and fully managed reinforcement learning capability. This new service will enable organizations to improve AI agents with reinforcement learning, without investing in costly hardware and software infrastructure and deep expertise. Customers also pay based only on their usage, which makes it cheaper and easier for clients to opt for this service. This new service can add recurring revenue streams in the coming quarters.
CoreWeave is also improving its platform with software tools such as Mission Control and SUNK (Slurm on Kubernetes). These tools enable clients to run and monitor workloads on CoreWeave's platform easily. The ease of use further translates into higher customer loyalty.
Valuation
CoreWeave is currently trading at 18.7 times sales, which may seem high for an unprofitable company. However, the valuation can be justified considering its huge market opportunity and exceptional multi-year revenue visibility.
Analysts expect the company's revenues to soar from a projected $5.27 billion in fiscal 2025 to $18.09 billion by the end of fiscal 2027. MoffettNathanson analyst Nick Del Deo has projected an even faster revenue growth trajectory for the company, with revenues reaching in the $25 billion range by 2028. If the company actually achieves such rapid growth, you may not see any significant discount to its valuation from current levels.
Still assuming a 20% to 30% discount (to be more conservative), you can expect its price-to-sales multiple to fall to 13 times to 15 times. This translates into the market capitalization of $235.2 billion to $271.3 billion by the end of fiscal 2027, up 3.5 times to 4.1 times its current market capitalization of around $66 billion.
CoreWeave faces several challenges, including customer concentration risk, increased competition from hyperscalers, and funding risk. Hence, investors can manage the downside of this high-risk, high-reward stock by opting for a dollar-cost averaging strategy and gradually building a position.
