Amid Several High-Profile Deals, Is It Too Late to Buy CoreWeave Stock?

Key Points

• CoreWeave stands out with its cloud servers designed specifically for AI workloads.

• Nvidia, OpenAI, and Meta Platforms each made multibillion-dollar deals with CoreWeave in September.

• Its considerable losses could overshadow the company's massive revenue growth.

• 10 stocks we like better than CoreWeave ›

CoreWeave (NASDAQ: CRWV) stock has logged considerable gains in September. It has benefited from high-profile deals.

The first was with Nvidia, in which the chip giant agreed to purchase CoreWeave's residual unsold capacity. Now, expanded deals with OpenAI and Meta Platforms have added further fuel for a CoreWeave stock surge.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

However, CoreWeave has only traded on the market since March 28, meaning investors have not had much time to start buying. Are they too late, or can they still take advantage of this opportunity?

Image source: Getty Images.

The CoreWeave value proposition

CoreWeave is a cloud infrastructure provider, but it stands out from Amazon's AWS and the Microsoft cloud platform Azure because of its added emphasis on artificial intelligence (AI).

CoreWeave designed its platform specifically to handle workloads pertaining to AI, machine learning, visual effects, and high-performance computing.

As previously mentioned, CoreWeave already has many of these companies as clients. Still, it further benefits because companies like Meta Platforms and Alphabet have allocated tens of billions of dollars in 2025 alone for AI-related capital projects.

Thus, in a sense, it should not be a surprise that Nvidia took an interest in CoreWeave's unsold capacity. Nor should it shock investors that OpenAI made an additional $6.5 billion in long-term agreements with the company. Additionally, CoreWeave concluded September with a $14 billion contract with Meta to provide additional cloud capacity.

Moreover, the growth before this was phenomenal. In the first half of 2025, CoreWeave generated $2.2 billion in revenue, a 275% increase from the same period one year ago. Admittedly, it will likely not sustain that growth rate in the long term, but since those numbers do not include the latest deals, investors can probably expect the rapid increases to continue.

Furthermore, the company raised guidance when it announced earnings in mid-August, before announcing the latest deals. For 2025, it forecast revenue of $5.15 billion to $5.35 billion. That will rise 174% at the midpoint if that prediction holds.

Concerns about CoreWeave

Nonetheless, the financial picture appears less rosy below the top line. In the first half of 2025, cost and expense growth surged 350% higher, surpassing the rate of revenue growth and resulting in a modest operating loss.

Its spending also led to interest expenses spiking to $531 million during the period. Consequently, CoreWeave lost more than $605 million in the first two quarters of 2025, well above the $452 million loss in the same period one year ago.

Amid that loss, debt levels spiked considerably higher, leaving CoreWeave with almost $8.4 billion in debt, a tremendous burden for a company with less than $2.7 billion in book value.

Also, the company's $1.1 billion in liquidity will absorb around one year of losses at current rates. While it may attain access to some of the $560 million in restricted cash over time, continued losses may force it to issue additional shares or more debt in the near term.

Another effect of the losses is that they leave CoreWeave stock without a P/E ratio. Still, while its 16 price-to-sales (P/S) ratio is not cheap, that level is not unusual for a tech growth stock. Considering the company's growth, it could persuade investors to overlook its financial challenges and continue bidding the stock higher.

Is it too late to buy CoreWeave stock?

Despite the size of the recent deals and the growth in the stock price, it is not too late to buy CoreWeave stock.

Indeed, amid massive revenue growth, CoreWeave is sustaining huge losses and burning tremendous amounts of cash. Such conditions make the cloud stock a riskier holding and could pressure its value in the long term, so this stock is probably not suitable for risk-averse investors.

However, CoreWeave's cloud servers play a pivotal role in the AI market, and its three huge deals in September confirm its value. Such conditions arguably make 16 times sales a reasonable price to pay for this stock, and shareholders who can handle the risk might benefit by buying CoreWeave shares at these levels.

Should you invest $1,000 in CoreWeave right now?

Before you buy stock in CoreWeave, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $621,976!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,085!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 29, 2025

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.