As the AI megatrend continues to accelerate, the Magnificent 8 (plus 2) continues to widen its lead (some more than others) and will thereby continue to benefit. Just this past week, for example, OpenAI unveiled "Sora 2," an advanced video generation model and a creation-first social feed (with API and Android integration planned). Also, Anthropic's "Claude Sonnet 4.5" (their most intelligent model yet) is now generally available on Google Vertex AI (enabling developers to build sophisticated applications). This all spells "more growth" and more need for chips, data centers and energy-efficient solutions. In a nutshell, more upside for AI ahead.
CoreWeave: New Trade, The Plot Thickens
CoreWeave shares are up 200% in the last month and now trade at 14.4x 2025 revenue guidance. That is a high multiple, that can easily go much higher, for this NVIDIA/AI-focused hyperscaler cloud platform (optimized for generative AI workloads, such as Microsoft, Meta and Open AI) through multiple expansion or revenue growth (they can keep landing new contracts/deals).
CoreWeave: Despite Massive Tail Risk, Big AI Upside Ahead
Generative-AI cloud platform, CoreWeave (CRWV), announced exceptional revenue growth this past week. And the company is delivering on its mission to help hyperscalers, such as Microsoft, get up to speed quickly with early access to leading Nvidia GPUs. And even though the shares likely have dramatically more price upside ahead, there is one massive tail risk investors need to be aware of.
CoreWeave: Despite Big Risks, Massive AI Upside
CoreWeave is a Generative-AI cloud platform on the frontlines of the AI infrastructure megatrend. As a new IPO (March 28, 2025), the company basically helps hyperscalers get up and running fast with early access to leading Nvidia GPUs optimized for AI. Microsoft is their biggest customer at 62% of revenues, but OpenAI signed a big deal in March that should make the future revenue split about 45% OpenAI and 23% Microsoft. This report reviews the business model, market position, growth prospects, valuation and risks (including tariffs and macroeconomics, to name two), and then concludes with my opinion on investing.