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

We came across a bullish thesis on CoreWeave, Inc. on Deep Value Returns’s Substack. In this article, we will summarize the bulls’ thesis on CRWV. CoreWeave, Inc.'s share was trading at $88.94 as of February 2nd.

CoreWeave (CRWV) is a neocloud infrastructure provider purpose-built for next-generation AI workloads, operating at the center of one of the fastest-growing areas in technology. The company is on track to generate more than $10 billion in revenue this year, with year-over-year growth exceeding 90%, driven by surging demand for AI compute.

Despite this extraordinary growth, CoreWeave’s stock continues to trade at levels that imply deep skepticism, even as its contracted revenue backlog now exceeds its entire market capitalization. This disconnect has created a rare situation where the company’s future revenues, already contractually committed, are valued less than the equity itself.

The market’s reluctance to reward CoreWeave stems primarily from the intensity of its capital expenditures and the resulting strain on its balance sheet. Scaling AI infrastructure at this pace requires massive upfront investment, leaving little room for near-term profitability and virtually no margin for operational error. Investors, focused on cash burn and leverage, struggle to see a clear path to earnings in the short term, and this uncertainty has weighed heavily on the stock.

However, this concern appears to be well understood and already priced in. Growth businesses are often dismissed before profitability becomes visible, only to be rewarded once scale is achieved and operating leverage emerges.

The core thesis is that CoreWeave’s current valuation reflects peak pessimism, ignoring both the durability of its backlog and the strategic value of its infrastructure in an AI-driven economy. On this basis, there is a credible path to $215 per share by early 2027. Even if that upside does not fully materialize, the argument remains that a share price around $95 severely undervalues a business that could justify a $50 billion market capitalization over time, offering an unusually asymmetric risk-reward profile.

Previously, we covered a bullish thesis on Amazon.com, Inc. (AMZN) by FluentInQuality in May 2025, which highlighted the strength of AWS, high-margin advertising, and Amazon’s integrated logistics ecosystem. AMZN’s stock price has appreciated by approximately 16.44% since our coverage. Deep Value Returns shares a similar but emphasizes on valuation dislocation and backlog-driven upside in CoreWeave.

CoreWeave, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held CRWV at the end of the third quarter which was 29 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.