CoreWeave, Inc. (CRWV): A Bull Case Theory

We came across a bullish thesis on CoreWeave, Inc. (CRWV) on Outperforming the Market’s Substack by Simple Investing. In this article, we will summarize the bulls’ thesis on CRWV. CoreWeave, Inc. (CRWV)’s share was trading at $ 135.05 as of 5^th June.

CoreWeave’s IPO has become one of the most closely watched in recent memory, offering a rare inside look into the infrastructure powering today’s AI revolution. Originally founded as The Atlantic Crypto Corporation in 2017, the company pivoted from crypto mining to GPU-based cloud computing in 2022, just as demand for accelerated AI workloads began to explode.

This well-timed shift has fueled explosive growth, with revenue soaring from $20 million in 2022 to $1.9 billion in 2024. CoreWeave now operates 32 data centers with over 250,000 Nvidia GPUs and more than 360 MW of active power, enabling it to serve top-tier clients such as OpenAI, Microsoft, Meta, Cohere, and Mistral. Its vertically integrated, Kubernetes-native platform is purpose-built for AI and delivers significantly higher performance, including up to 20% better Model FLOPS Utilization than legacy hyperscalers.

Deeply tied to Nvidia—its largest partner and shareholder with a 5% stake—CoreWeave is often first to bring new GPU architectures like the H200 and GB200 NVL72 to market. While this relationship gives CoreWeave a competitive edge, it also presents concentration risks, as all current customer contracts mandate Nvidia hardware.

Its business model centers on long-term, take-or-pay contracts averaging four years in duration, with 96% of 2024 revenue underpinned by these commitments. Customers prepay before CoreWeave installs capacity, derisking its growth. Now publicly listed, CoreWeave represents a compelling lens into the evolving AI infrastructure stack, combining purpose-built architecture, strategic alignment with Nvidia, and financial predictability, making it a cornerstone player in the AI economy.

While CrowdStrike (CRWD) faces scrutiny over its elevated valuation and operational headwinds, CoreWeave (CRWV) offers a contrasting AI infrastructure bet rooted in explosive growth and Nvidia alignment. Both are central to the AI narrative—CRWD on the security front and CRWV on the compute backbone—but CoreWeave’s take-or-pay contracts and visibility into future revenues provide a level of financial derisking not currently seen in CRWD’s high-multiple, sentiment-sensitive profile.

Previously, we covered a bearish thesis on CrowdStrike (CRWD) by Stock Whisperer on Substack in May 2025, pointing to bearish technicals, workforce reductions, and sentiment risk. While both highlight valuation concerns, Stock Whisperer adds near-term catalysts for caution, framing CRWD as vulnerable despite its long-term strength. Viewed together, CRWD and CRWV offer a study in contrasting AI exposure—mature cybersecurity versus hyper-growth infra.

CoreWeave, Inc. (CRWV) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held CRWV at the end of the first quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.