Down 53%, Should You Still Buy CoreWeave's (CRWV) Stock?

Key Points CoreWeave’s stock has been cut in half since it hit its all-time high. But it looks deeply undervalued relative to its long-term growth potential. 10 stocks we like better than CoreWeave › CoreWeave (NASDAQ: CRWV) , a cloud-based provider of AI infrastructure services, went public at $40 per share on March 28, 2025. After dazzling the market with its explosive growth, CoreWeave's stock reached a record high of $183.58 on June 20, 2025. But today, CoreWeave's stock trades at about $86. Let's see why its stock pulled back, and if that decline represents a good buying opportunity for patient investors. Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue » Image source: Getty Images. CoreWeave is growing like a weed CoreWeave was originally an Ethereum mining company, but it repurposed its GPUs to run cloud-based AI tasks after the cryptocurrency market crashed in 2018. By the end of 2022, it had opened three dedicated data centers. Today, it operates 51 data centers across North America and Europe, and it's installed more than a quarter-million Nvidia (NASDAQ: NVDA) GPUs in its servers to train AI algorithms. Nvidia also owns a 11.5% stake in CoreWeave, making it one of the company's top investors. By providing only cloud-based computing power via its GPUs, CoreWeave processes AI tasks roughly 35 times faster and 80% more cheaply than cloud infrastructure leaders like Amazon Web Services (AWS) and Microsoft Azure . That's why its top customers include Meta Platforms , Microsoft, OpenAI, and Anthropic. In 2025, its revenue surged 168% to $5.1 billion, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 154% to $3.1 billion. For 2026, analysts expect its revenue to rise 151% to $12.9 billion as its adjusted EBITDA surges 144% to $7.5 billion. By the end of the second quarter of 2026, its contracted revenue backlog had expanded 246% year over year to $104 billion, and it expects three-quarters of its revenue this year to be locked into those sticky contracts. That backlog should also keep growing -- and give us plenty of visibility into its future growth -- as the AI boom continues. But investors shouldn't overlook its weaknesses CoreWeave's business is firing on all cylinders. However, it's still deeply unprofitable under generally accepted accounting principles ( GAAP ) -- which includes the interest on its rising debt and depreciation costs for its servers. It repeatedly issued more shares and debt to stay solvent, and it ended its latest quarter with a jaw-dropping debt-to-equity ratio of 14.3. As interest rates rise and the AI leaders adopt a more cautious approach to expanding their platforms, CoreWeave's expenses could overwhelm its slowing top-line growth. But for now, analysts still expect CoreWeave's revenue and adjusted EBITDA to grow at CAGRs of 101% and 110%, respectively, from 2025 to 2028. Those are incredible growth rates for a stock that trades at just 12 times this year's adjusted EBITDA. So while it's a risky and volatile stock, it looks like a compelling turnaround play after its 50% pullback. Should you buy stock in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $387,158 !* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,365,749 !* Now, it’s worth noting Stock Advisor’s total average return is 932 % — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor , and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 21, 2026. Leo Sun has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Amazon, Ethereum, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy .

CoreWeave’s stock has been cut in half since it hit its all-time high.

But it looks deeply undervalued relative to its long-term growth potential.

CoreWeave (NASDAQ: CRWV) , a cloud-based provider of AI infrastructure services, went public at $40 per share on March 28, 2025. After dazzling the market with its explosive growth, CoreWeave's stock reached a record high of $183.58 on June 20, 2025.

But today, CoreWeave's stock trades at about $86. Let's see why its stock pulled back, and if that decline represents a good buying opportunity for patient investors.

Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »

CoreWeave was originally an Ethereum mining company, but it repurposed its GPUs to run cloud-based AI tasks after the cryptocurrency market crashed in 2018. By the end of 2022, it had opened three dedicated data centers.

Today, it operates 51 data centers across North America and Europe, and it's installed more than a quarter-million Nvidia (NASDAQ: NVDA) GPUs in its servers to train AI algorithms. Nvidia also owns a 11.5% stake in CoreWeave, making it one of the company's top investors.