CoreWeave: Left Behind In AI Rally - Still A Strong Buy
CoreWeave has a significant backlog of $99.4 billion, which supports its revenue targets for FY2027. The company is experiencing strong demand due to increased power capacity and favorable pricing trends for GPUs. However, this growth comes with elevated debt and equity erosion risks.
- ▪CoreWeave's backlog is largely sold out for FY2026 and over 75% of its capacity for 2027 is contracted.
- ▪The company is expected to achieve an annualized revenue run-rate exceeding $30 billion in FY2027.
- ▪Increased pricing trends for both older and newer GPUs are contributing to improved EBITDA margins.
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