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

We came across a bullish thesis on CoreWeave, Inc.  on Capitalist Letter’s Substack by Oguz Erkan. In this article, we will summarize the bulls’ thesis on CRWV. CoreWeave, Inc. 's share was trading at $89.88 as of September 3^rd.

Coreweave has rapidly emerged as a key infrastructure provider for the AI revolution, drawing comparisons to Cisco’s pivotal role in the internet era. Like Cisco in the 1990s, Coreweave addressed a structural bottleneck—traditional cloud architecture was optimized for CPU workloads, while AI requires massive GPU parallelization. By building GPU-native data centers with liquid cooling, bare-metal software environments, and optimized performance, Coreweave created an offering that improves AI workloads by up to 45%.

Its business model—securing long-term contracts, financing hardware through leveraged facilities, and delivering capacity quickly—has fueled explosive growth, with revenues rising from $16 million in 2022 to $1.9 billion in 2024. The company benefits from excess AI demand that incumbents like AWS and Azure cannot fully meet, giving it scale advantages and customer captivity in the GPU cloud niche. Coreweave also undercuts traditional hyperscalers with lower prices, winning marquee contracts such as an $11.3 billion deal with OpenAI. However, the growth story carries heavy risks. Coreweave’s revenue concentration is extreme, with Microsoft accounting for over 70% of sales, raising questions about sustainability once hyperscalers build their own GPU capacity.

Its debt burden exceeds $11 billion, with high interest obligations and balloon payments that require continued financing or equity dilution. Dependence on Nvidia, which owns 7% of Coreweave, ensures access to cutting-edge chips but leaves it exposed if hyperscalers accelerate adoption of custom silicon. While bullish projections suggest potential to triple in value by 2030, profitability remains speculative. Given the leverage, customer concentration, and supplier risk, the downside appears significant, making Coreweave a highly asymmetric and speculative bet at this stage.

Previously we covered a bullish thesis on Palantir Technologies Inc. (PLTR) by Deep Value Returns in May 2025, which highlighted the company’s scale, strong growth, and leadership in AI and data analytics. The company’s stock price has appreciated by 42.29% since our coverage as the thesis played out. Ok_Custard5633 shares a similar bullish perspective but emphasizes CoreWeave’s revenue surge, institutional backing, and NVIDIA-Microsoft alignment.

CoreWeave, Inc.  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 potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.