CRWV Witnesses Healthy Growth Across Healthcare and Finance Sectors

CoreWeave, Inc. CRWV is witnessing increasing adoption of its solutions in healthcare and finance, building momentum as industries shift from pilot projects to production-scale deployments. The company ended the second quarter of 2025 with $30.1 billion in contracted backlog, up $4 billion from the first quarter and doubling year to date. This figure includes the previously announced $4 billion expansion with OpenAI, alongside new wins ranging from AI startups to large enterprises. In the past eight weeks, both of CoreWeave’s hyperscale partners have expanded their contracts. The customer pipeline is increasingly diverse, with demand spanning media and entertainment, healthcare, finance, industrials and more.

In healthcare and the life sciences, CoreWeave has partnered with companies like Hippocratic AI, which is developing safe and secure AI agents to enhance patient outcomes.

The financial services sector is also emerging as a major growth area. CoreWeave supports proprietary trading firms like Jane Street and recently added mega-cap banks, including Morgan Stanley and Goldman Sachs.

Beyond these, CoreWeave is making a strong impact in media and entertainment. In the first half of 2025, its VFX cloud service Conductor saw usage increase more than fourfold. At the same time, generative AI startup Moonvalley signed a multiyear contract for NVIDIA’s GB200 NVL72 system.

AI adoption is accelerating across industries, and demand for CoreWeave’s purpose-built cloud is growing rapidly. By delivering the industry’s highest-performing infrastructure for both training and inference, CoreWeave has become the platform of choice for leading AI labs and emerging innovators. In the second quarter, the company deployed NVIDIA’s GB200 NVL72 and HGX B200 at scale, fully integrated into its Mission Control system. Mission Control remains central to CoreWeave’s ability to scale quickly, ensuring automated lifecycle management, reliability and unmatched visibility for customers.

The company broadened its object storage portfolio with automatic tiering and introduced new solutions, including the CoreWeave–Weights & Biases Inference service. This inference platform provides a research-friendly API compatible with leading open-source models such as OpenAI’s Kimi K2, Meta’s Llama 4, DeepSeek and QnA3. Additionally, it is investing in SUNK (Slurm on Kubernetes) to better serve large AI labs and enterprises. The company has also added support for third-party storage platforms, VAST, WEKA, IBM Spectrum Scale, DDN and Pure Storage, which are now integrated into its technology stack and deployed at scale in production environments.

Citing accelerating demand and a robust pipeline, management has raised 2025 revenue guidance to $5.15–$5.35 billion compared with $4.9 billion to $5.1 billion projected earlier. For the third quarter, CRWV projects revenues to be between $1.26 billion and $1.3 billion.

However, challenges for CRWV remain plenty as it juggles ballooning interest expense, heavy capital expenditure and intense competition from rivals like Nebius Group N.V. NBIS and Microsoft Corporation MSFT.

Taking a Look at AI Growth Strategies of CRWV’s Competitors

Nebius’ core business is an AI cloud platform designed for intensive workloads, powered by in-house developed software and hardware, with R&D hubs across Europe, North America and Israel. Nebius provides AI builders with the compute power, storage, managed services and tools required to build, fine-tune and deploy their models. In the second quarter of 2025, the company’s AI cloud infrastructure revenues surged more than ninefold year over year, fueled by robust customer demand for its copper GPUs and near-peak platform utilization. Nebius continues to see strong momentum in its business, with demand for AI compute remaining exceptionally high. It raised its guidance for annualized run rate (ARR) revenue from the previous range of $750 million to $1 billion to the band of $900 million to $1.1 billion.

Microsoft is one of the largest broad-based technology providers in the world. It delivered exceptional fiscal 2025 performance with total revenues up 15% year over year, demonstrating the company's successful AI transformation strategy. The AI business alone surpassed a $13 billion annual revenue run rate, growing an astounding 175% year over year, while Microsoft Cloud revenues exceeded $168 billion with 23% growth. Microsoft 365 Commercial cloud revenue grew 15% with expanding seat growth of 6% driven by small and medium businesses, while the integration of AI capabilities through Microsoft 365 Copilot is driving higher revenue per user across commercial products, positioning the company at the forefront of the generative AI revolution. Its partnership with OpenAI has cemented Azure as a premier platform for AI workloads, complemented by AI integration across Office, GitHub and Dynamics.

CRWV Price Performance, Valuation and Estimates

Shares of CoreWeave have gained 152.3% in the past six months compared with the Internet Software industry’s growth of 12.6%.

In terms of Price/Book, CRWV shares are trading at 17.72X, way higher than the Internet Software Services industry’s 6.57X.

The Zacks Consensus Estimate for CRWV’s earnings for 2025 has been revised downward over the past 60 days.

CRWV currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research