CoreWeave Is Up More Than 300% in Just 3 Months - But Could It Go Even Higher?

CoreWeave (NASDAQ: CRWV) went public in March and was one of the most anticipated IPOs of the artificial intelligence boom. It's also been one of the best-performing IPOs. CoreWeave went public at a price of $40 per share and as of this writing, the stock trades for more than four times that level.

Although CoreWeave is losing money, this AI infrastructure company is growing at an incredible pace, and this has caused the stock to climb so high. Here I'll discuss what the company does, how the business is performing, and whether the stock could soar higher, even after its excellent performance in just a few months as a public company.

Image source: Getty Images.

CoreWeave in a nutshell

CoreWeave is an AI infrastructure company, operating a network of data centers in the United States and Europe, and offering a cloud-based software platform that provides enterprise clients with AI computing power.

Specifically, CoreWeave provides remote access to high-powered AI infrastructure such as state-of-the-art graphics processing units (GPUs) in a way that is specifically designed to handle AI workloads.

Excellent results so far

CoreWeave recently reported its first-quarter 2025 earnings -- it's first report as a publicly traded company. And to say the results were strong would be a bit of an understatement.

For the quarter, CoreWeave reported about $982 million in revenue, which was more than five times what it generated a year prior. The company reported a loss on the bottom line, but had about $2 billion in cash on its balance sheet (and just raised another $2 billion), so it has plenty of runway for growth.

The company ended the quarter with a revenue backlog of $25.9 billion and reported some big wins including a $11.2 billion deal with OpenAI and a major partnership with IBM (NYSE: IBM).

A few weeks after earnings, CoreWeave agreed to lease two large data centers from Applied Digital (NASDAQ: APLD) that would dramatically increase the company's capacity, triggering a wave of investor optimism and sending the stock skyrocketing to a fresh all-time high.

Could CoreWeave vault higher from here?

The short answer is that it depends on whether CoreWeave can continue to outperform expectations, as it did in its first quarter earnings report. For the second quarter, the company is guiding for revenue in the range of $1.06 billion to $1.1 billion, and the consensus of analysts who follow the company calls for $1.08 billion, right in the middle of CoreWeave's range.

Looking a bit further into the future, analysts are expecting a total of $5.05 billion in revenue this year and for revenue to grow another 131% to $11.66 billion in 2026. And not only that, but although CoreWeave is expected to lose money this year, analysts expect the company to become slightly profitable next year.

CoreWeave is one of the most hyped AI IPO stocks in recent history, but with revenue more than quintupling year-over-year, the hype seems well-deserved. Expectations are high for CoreWeave, but if the company can continue to over-deliver on revenue growth while simultaneously crossing over into the land of profitability, the stock could certainly have further to climb. After all, there are AI companies with far slower growth rates that trade for much more than 6.7 times forward sales, so even after quadrupling in just a few months, CoreWeave isn't exactly an expensive stock.

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

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Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.