Artificial intelligence (AI) cloud-computing specialist CoreWeave (CRWV +3.29%) stock has been on a tear recently, and I think its future looks bright, too -- because of the expected massive growth in data centers in the coming years. Per a McKinsey report from April, "Our research shows that by 2030, data centers are projected to require $6.7 trillion worldwide to keep pace with the demand for compute power."
This is largely tied to the boom in AI, which requires a lot of processing power.
NASDAQ: CRWV
Key Data Points
Check out CoreWeave's total revenue numbers:
- $16 million in 2022.
- $229 million in 2023.
- $1.9 billion in 2024.
- $4.3 billion in the past 12 months (as of mid-November).
That's some crazy growth, and the stock doesn't even seem overvalued, per some measures. Its price-to-cash-flow ratio, for example, was recently 14.4, below the 19.3 figure for its corresponding index. (There isn't much past data for CoreWeave, as it only debuted on the market via an IPO in March 2025.) Its price-to-sales ratio is another matter, recently sitting at a steep 7.1.
Image source: Getty Images.
So what does this intriguing company do? Well, just as Nvidia pivoted from focusing on chips for gaming to chips for AI processing, CoreWeave pivoted from a focus on cryptocurrency mining to a focus on AI, offering a well-regarded cloud platform for artificial intelligence (AI) infrastructure and software.
Here's another way to think about CoreWeave's valuation: Its market cap was recently $37 billion. Imagine that it's 2035. Do you think the company will sport a much higher value? Then perhaps it's attractive at recent levels. Do keep in mind that it's carrying significant debt and posting losses while it builds out data centers, so it's not a riskless investment.
Its future does seem bright, though, as it has inked some multibillion-dollar deals with big companies, such as Meta Platforms. And it's sporting a hefty backlog of orders, valued at more than $55 billion as of the end of its third quarter.
