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CoreWeave’s (CRWV) Ascent Implies That with Great Data Comes Great Responsibility

CoreWeave Inc. (NASDAQ:CRWV) has delivered edge-of-the-seat excitement for investors this year. A gravity-defying one-month gain of 145% in May has brought its YTD tally to around 160%, an impressive performance for a stock in the over $10 billion market capitalization bracket.

Indeed, much of this rally has been news-driven (and not speculation), including Nvidia’s (NASDAQ:NVDA) revelation of a 7% stake (as of March end) and a string of high-profile contracts. The latest being the $4.0 billion expansion deal with OpenAI, which already has an existing agreement with the company worth up to $12 billion, and the signing of a new hyperscaler client.

But as Isaac Newton reminded us, what goes up must come down. After such a meteoric rise, some investors are asking the inevitable question: Can the rally continue or even sustain at these levels?

Pat Burton, senior managing director at Winslow Capital Management, recently argued that the risk-reward is unfavourable for CoreWeave compared to more stable companies like Microsoft.

That cautious view is gaining traction, even as the stock price scales new highs. According to a May 23 Bloomberg report, data from S3 Partners LLC shows that short interest in CoreWeave shares, as measured by the percentage of shares borrowed by short sellers, has surged from 18% in late April to 45% earlier in the week.

Theoretically, this increased short interest could result in a short squeeze, in which short sellers are forced to buy additional shares to cover their positions as prices rise. But according to S3 Partners’ analysis, a squeeze is unlikely to deter them as the market appears to have ample appetite to initiate new short positions.

So, what’s spooking some of these investors despite Nvidia’s backing and rapid topline growth?

The most prominent concern is CoreWeave’s balance sheet leverage. The company is piling up massive debt at a relatively higher cost to fund its capital expenditure plans. Bloomberg notes that its debt-to-total assets ratio climbed to 54% by March 31, well above the 30% average of the Nasdaq 100 index.

Another growing concern is whether AI demand is beginning to peak after some major tech companies have scaled back their investment in AI infrastructure, sparking fears that CoreWeave’s growth may not be as sustainable as hoped.

Among notable names that have made their cautious view clear is D.A. Davidson analyst Gil Luria. Luria downgraded the stock to Underperform (May 15) with a price target of $36, when the stock was trading at around $66. In very blunt terms, he stated the business is not worth scaling because of its lower return on investment. Greg Miller from Citizens JMP, who recently initiated coverage on CoreWeave with a Hold rating, asked investors to be on the sidelines as the current risks are too high.

As of May 23, data from CNN.com shows that 44% of analysts rate CoreWeave a Buy, 50% recommend a Hold, and 6% recommend a Sell on the shares. The consensus 12-month median price target is $67, implying a potential downside of around 35%.

Finally, a key date for investors to watch is the lockup period expiry for CoreWeave on September 24, 2025. That’s when the insiders will be free to sell their shares, and the free float will increase. This often tends to increase the trading volume and volatility of the stock.

CoreWeave Inc. (NASDAQ:CRWV) provides AI developers and companies with cloud-based graphics processing unit (GPU) infrastructure, primarily based on Nvidia GPUs.

While we acknowledge the 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 AI stock that is more promising than CRWV and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…