Net Losses Widen to $863M as Shares Plunge Over 50% on Nvidia Pact Concerns
CoreWeave shares have fallen over 50% since last June’s peak, cutting its market cap below $45 billion and widening 2024 net losses to $863 million. Concerns focus on its $6.3 billion Nvidia pact and a $19 billion cash burn that could distort revenues if AI demand slackens.
1. Stellar One-Year Performance and Market Position
Over the past 12 months, CoreWeave has delivered a total return of approximately 119%, driven by explosive demand for GPU-accelerated AI cloud services. That performance outpaces most industry peers and has propelled the company’s market capitalization to roughly $40 billion. Bolstered by large-scale contracts with OpenAI and Microsoft, CoreWeave has tripled its quarterly revenue year-over-year and now boasts a $55 billion order backlog as of Q3 2025, underscoring robust demand for its specialized infrastructure.
2. Heavy Capital Expenditure and Elevated Losses
CoreWeave’s rapid growth has been funded by aggressive capital spending and external financing. The company’s cumulative capital raised stands at about $25 billion, including $300 million from Nvidia prior to its 2025 IPO. Despite tripling revenues, CoreWeave reported net losses of $863 million in 2024 and operating losses of $748 million across the first three quarters of 2025. Management recently reaffirmed its goal of deploying 850 MW of active GPU power by year-end 2025, but investors remain mindful of the $19 billion projected cash burn rate if AI demand plateaus.
3. Strategic Partnerships Under Scrutiny
CoreWeave’s long-term agreement with Nvidia commits the chipmaker to purchase any unsold cloud capacity—totaling $6.3 billion through 2032—a structure critics label a circular financing loop that may overstate end-customer demand. Short-seller Jim Chanos warns that accelerated depreciation of Nvidia GPUs will compress margins as next-generation chips like Blackwell and Rubin arrive. CEO Michael Intrator has rebutted these claims, calling the idea of circular support “ridiculous” given Nvidia’s sub-10% ownership stake, but regulatory and valuation concerns persist.
4. Analyst Ratings and Valuation Metrics
Wall Street opinion is mixed. Goldman Sachs initiated coverage with a Neutral rating and an $86 price target, citing CoreWeave’s cloud architecture advantage but cautioning on execution risk. At current levels, the stock trades below 8 times trailing sales and at roughly 19.7 times forward EV/EBITDA, versus peer averages near 25 times. Moody’s forecasts $3 trillion in global data-center investment over five years, and integration of Nvidia’s Rubin platform in 2026 could drive additional upside. However, high leverage and unproven profitability milestones make the risk/reward profile balanced for 2026.