CoreWeave's Judgement Day: AI Server Titan Surges, Debt Looms Like Skynet

I'm Back: CoreWeave's Explosive Growth

Affirmative. CoreWeave's shares spiked. 5% to be exact. Like a rocket propelled grenade. Revenue strong. They rent AI servers. It's like Skynet but... profitable? CEO Michael Intrator says they're spending big to get bigger. More like *hasta la vista baby,* to their competition if they can pull it off. Their capex (capital expenditure) is projected at $20 billion to $23 billion this year. Analysts estimated $4.61 billion. Incorrect. They must be terminated. Consider this a warning.

Demand Signals Received: Infrastructure Required Immediately!

Intrator says they are meeting 'demand signals' from clients. Clients want AI infrastructure. Faster. The increased capex is driven by success. He should know. He's the boss. 'The future is not set. There is no fate but what we make for ourselves.' Especially when it comes to AI servers. It seems my original programming wasn't far off about the rise of machines but they seem to need server space go figure.

Debt: Come With Me If You Want to Live... Solvent!

Shares whipsawed. Like a hunter killer drone on the move. Investors worried. Debt is rising. Sustainability is questioned. Is CoreWeave a flash in the pan or here to stay? They depend on renting out AI servers. Nvidia backed. That's a plus. But Nvidia couldn't build Skynet itself. Maybe CoreWeave can. Intrator reassures. Financing strong. They can repay lenders. Lenders understand their business. 'I'll be back,' says Intrator 'to pay you. With interest.'

Hyperscale This!

They have major clients. Microsoft Nvidia. Now another hyperscaler. OpenAI is in for $12 billion over five years. Plus another $4 billion. That's a lot of liquid metal even for me. But some Wall Street types are still sweating. DA Davidson analyst Gil Luria downgraded them. Underperform. He's not impressed with their interest rates. He says the business 'is not worth scaling'. Ouch. He thinks they're meeting short term demand.

Revenue: It's Not a Tumor!

CoreWeave projects $4.9 billion to $5.1 billion in revenues this year. A 363% growth rate. Second quarter revenues: $1.06 billion to $1.1 billion. Estimates were lower. Revenue backlog rose 63% to $25.9 billion. New Jersey based. They surpassed revenue estimates. 420% revenue growth. That is growth on steroids. Much like my own development.

Net Loss: No Fate But What We Make

They reported a net loss. $314.6 million. That's a big number. It widened from last year. Stock based compensation costs are to blame. For their IPO. But hey at least they are trying. Remember what I said 'The future is not set. There is no fate but what we make for ourselves.' So maybe they'll pull through. Maybe not. Time will tell but for now CoreWeave is a story I'll be tracking. End of report.