By Contributor,Nikolas Kokovlis,Trefis Team

Copyright forbes

The CoreWeave logo appears on a smartphone screen and as the background on a laptop computer screen in this photo illustration in Athens, Greece, on September 25, 2025. (Photo by Nikolas Kokovlis/NurPhoto via Getty Images)
NurPhoto via Getty Images

CoreWeave stock (NASDAQ:CRWV) exhibited an impressive performance increase of 12% on September 30, 2025, following the announcement of a groundbreaking $14.2 billion partnership with Meta Platforms, affirming the organization’s position as a leading AI infrastructure provider. The seven-year agreement with Meta, which extends through December 2031 with the potential for expansion into 2032, signifies a strategic diversification success for CoreWeave. Having been reliant on Microsoft for roughly 70% of its revenue, this partnership fundamentally alters CoreWeave’s risk related to client concentration while illustrating the scalability of its specialized GPU infrastructure model.

The partnership guarantees Meta access to CoreWeave’s Nvidia GB300 server racks, each outfitted with 72 of Nvidia’s advanced Blackwell AI GPUs, establishing CoreWeave as Meta’s infrastructure partner for forthcoming AI workloads. This agreement comes on the heels of CoreWeave’s recent $6.5 billion expansion with OpenAI, raising the total contracted revenue with OpenAI to $22.4 billion and creating a varied blue-chip client portfolio.

We elaborate further on this development and CoreWeave’s valuation in the sections below. That being said, if you’re looking for a less volatile investment than holding a single stock like CRWV, you might consider the High Quality Portfolio. It has consistently outperformed its benchmark—a combination of the S&P 500, Russell, and S&P MidCap indexes—and has realized returns surpassing 91% since its inception. What accounts for this? As a collective, HQ Portfolio stocks have yielded superior returns with lower risk compared to the benchmark index; avoiding a tumultuous experience, as demonstrated by HQ Portfolio performance metrics. In addition, refer to – Wait For A Dip To Buy Hims & Hers Health Stock

Medium-Term Growth Catalyst

Meta’s dedication grants CoreWeave unparalleled revenue visibility and confirms the company’s specialized “AI Hyperscaler” strategy. As Meta actively enhances its investments in AI infrastructure—with capital expenditures anticipated between $66-72 billion for 2025—CoreWeave becomes an essential infrastructure provider for one of the largest AI spenders in the tech industry.

The agreement bolsters CoreWeave’s competitive advantage against hyperscale cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud by showcasing that specialized AI infrastructure can command premium pricing and foster client loyalty.

MORE FOR YOU

Valuation Analysis: Compelling Growth Multiple

CoreWeave’s current market capitalization of approximately $70 billion and its current revenue base of $3.5 billion indicate that the company trades at roughly 19 times trailing revenue—a compelling multiple considering its rapid growth trajectory.

For context, CoreWeave’s revenue is projected to increase over 3.5 times, nearing approximately $18 billion by 2027. Does this imply the company’s valuation will decrease to under 4 times sales, assuming the stock price stays stable? We do not think so. Even at a more conservative 8 times revenues, the company’s valuation would likely surpass $145 billion, representing more than a doubling from current levels in the next three years. Indeed, this valuation seems conservative when compared to other high-growth technology stocks that trade at considerably higher revenue multiples.

For instance, among AI and Data Infrastructure Leaders, Snowflake trades at around 18x revenue despite slower 28% growth rates, while Palantir commands a 124x revenue multiple with a 39% growth rate. In the realm of High-Growth SaaS Companies, Palo Alto Networks trades at a 15x revenue multiple, and HubSpot at a 10x multiple. There are numerous other comparable examples.

Growth Trajectory Validation

CoreWeave’s recent achievements authenticate our previous forecasts of substantial upside potential, with the stock rising 47% over the last month and more than tripling since its IPO in March 2025 at $40 per share. The company’s revenue growth of 206% year-over-year in Q2 2025, reaching $1.213 billion with 62% adjusted EBITDA margins, showcases significant operational leverage at scale.

With a contracted backlog of $30.1 billion offering multi-year revenue predictability and nearly 50% anticipated to be realized within 24 months, CoreWeave presents investors with both growth and certainty—an unusual pairing in high-growth technology stocks.

The partnership with Meta reinforces CoreWeave’s thesis as the specialized infrastructure layer driving the AI revolution, positioning the company for sustained growth as enterprise AI adoption accelerates across various verticals.

Naturally, we could be incorrect in our evaluations, and investors should carefully consider the risks prior to investing in CRWV stock. The primary risks associated with CoreWeave revolve around its financial stability and market standing. Specifically, the company confronts substantial challenges stemming from fierce competition with major cloud providers and the possibility of market cyclicality in AI spending. From an operational perspective, CoreWeave has a -29% net margin and a $15 billion debt burden necessary for significant infrastructure investments, compounded by a critical customer concentration risk with major clients such as OpenAI.

It’s important to recognize that investing in a single stock without thorough analysis can be perilous. Consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P MidCap, and Russell 2000 benchmark indices) to generate strong returns for investors. What accounts for this success? The quarterly rebalanced combination of large-, mid-, and small-cap RV Portfolio stocks has offered a dynamic means to capitalize on favorable market conditions while minimizing losses when the markets decline, as detailed in RV Portfolio performance metrics.

Editorial StandardsReprints & Permissions