CoreWeave's Revenue Could Increase 5 Times by 2028!

CoreWeave Inc. (NASDAQ: CRWV) announced that, according to projections released by a leading digital infrastructure analyst, revenues are expected to reach the “mid $20 billion range” by 2028. This means the company's forecast of $5.3 billion for 2025 is expected to increase nearly fivefold.

This “extraordinary” forecast was shared by MoffettNathanson analyst Nick Del Deo in a recent episode of the podcast “The Real Eisman Playbook.” The discussion highlighted CoreWeave's explosive emergence as a critical infrastructure player in the artificial intelligence boom.

Del Deo noted that CoreWeave’s total revenue in 2022 was approximately $16 million. The rise of this figure to $5.3 billion, and then to “mid $20 billion” by 2028, underscores the extraordinary demand for its services. "This is really scary. Incredible," the experts added.

CRWV started in 2017 as a cryptocurrency miner and has since become a significant partner for major AI players. The company fills its facilities solely by leasing them and is supported by specialized GPU equipment. It has managed to attract major customers, including Microsoft Corp. (NASDAQ: MSFT) and OpenAI, which currently account for 70% of its business.

This growth necessitates what Del Deo describes as “astronomical” spending levels, with capital expenditures projected to be between $21 billion and $23 billion for this year. "Within just a few years, capital budgets have entered the same league as AT&T, Walmart, and Exxon Mobil,” Del Deo said, highlighting the scale of the operation. "There’s nowhere else like CoreWeave."

However, despite the significant opportunities, Del Deo pointed out that CoreWeave could face competition from cloud computing giants like Amazon.com Inc. (NASDAQ: AMZN) and Alphabet Inc. (NASDAQ: GOOG, NASDAQ: GOOGL) in the future. With chip constraints easing, he anticipates that these large players will become "more efficient" in the field, which could pressure CoreWeave's profits over time.

CRWV shares have provided a return of 203.83% since their listings in March. However, they experienced a decline of 7.15% in the past month. While maintaining a stronger price trend in the short and long term, they show a poor trend in the medium term. More performance details are available according to Benzinga's Edge Stock Rankings data.

On Thursday, the futures for the S&P 500, Dow Jones, and Nasdaq 100 indexes were showing mixed signals. On Wednesday, the S&P 500 index fell by 0.53% to close at 6,699.40, while the Nasdaq 100 index dropped by 0.99% to finish at 24,879.01. Meanwhile, the Dow Jones ended down 0.71% at 46,590.41.