CoreWeave Rated Underperform as Growth Slows; Plans $30-35B Capex to Double Capacity
Bernstein began coverage of CoreWeave with an Underperform rating, forecasting growth to slow sharply in 2027-28 and warning of cash flow and margin pressure. CoreWeave ended 2025 with 850 MW of active power, contracted over 3.1 GW by 2027, and plans $30-35 billion capex to double capacity to 1.7 GW next year.
1. Bernstein Initiates Coverage with Underperform Rating
Bernstein began coverage of CoreWeave with an Underperform rating, citing risks in its neocloud model as hyperscale cloud providers could become competitors. The firm forecasts a sharp slowdown in growth for 2027 and 2028 that may exert pressure on cash flow and operating margins.
2. Aggressive Capacity Expansion Targets
CoreWeave closed 2025 with 850 MW of active power across 43 data centers, adding 260 MW in the fourth quarter. The company has contracted over 3.1 GW of additional power slated for 2027 delivery and plans $30-35 billion in capital expenditures to double active power to 1.7 GW by the end of 2026, with longer-term goals of adding more than 5 GW by 2030.