CoreWeave (NASDAQ: CRWV) has experienced a dramatic reversal of fortune since hitting its 52-week high on June 20, with shares falling 50% from that peak.
The cloud AI infrastructure company went public just over five months ago and initially surged an extraordinary 133% before investors began aggressively booking profits.
Several factors have weighed on the stock, including a planned all-stock acquisition of Core Scientific and a bigger-than-expected quarterly loss reported in its recent results.
The expiration of the post-IPO lock-up period also allowed insiders to sell their shares, adding further downward pressure to the stock’s performance.
Despite the steep decline, analysts and investors focused on long-term growth are eyeing the pullback as a potential entry point into one of the AI sector’s most compelling infrastructure plays.
CoreWeave’s revenue in the first six months of 2025 jumped 3.75 times compared to the same period last year, reflecting surging demand for cloud AI infrastructure that the company is struggling to fully meet.
The company’s backlog stood at a massive $30 billion at the end of the second quarter, growing by $14 billion year over year, dwarfing its Q2 revenue of $1.2 billion.
That backlog figure signals that CoreWeave does not currently have enough capacity to fulfill all the business it is receiving, highlighting the scarcity of cloud AI infrastructure at scale.
The company already holds a large enough backlog to support its revenue targets for the next three years, providing unusual visibility into future earnings compared to most high-growth technology companies.
Even under a conservative scenario in which CoreWeave’s revenue growth slows to 20% annually in 2029 and 2030, the company’s top line could approach $25 billion within five years.
If the stock trades at five times sales in 2030, in line with the Nasdaq Composite index’s price-to-sales ratio, CoreWeave’s market cap could reach approximately $125 billion.
That would represent nearly 2.75 times its current market cap, suggesting the recent sell-off may represent a significant long-term buying opportunity for patient investors willing to hold through near-term volatility.
