CoreWeave’s Growth Outpaces Expectations but Guidance Disappoints Investors
CoreWeave stock (CRWV) slipped in extended trading after the company released its Q3 2025 earnings report, revealing better-than-expected revenue growth but weaker-than-anticipated full-year guidance. Despite an impressive 134% year-over-year revenue surge, investors were disappointed by CoreWeave’s revised 2025 outlook, leading to a 6% dip in after-hours trading, according to CNBC.
The AI infrastructure company, which rents out powerful Nvidia GPUs to major clients including OpenAI, Meta, and Microsoft, has become a key player in the booming artificial intelligence cloud sector. However, a delay in one of its data center projects and narrowing profit margins weighed on investor sentiment.
Q3 2025 Financial Highlights
In its latest report, CoreWeave (NASDAQ: CRWV) posted:
- Earnings: Loss of $0.22 per share
- Revenue: $1.36 billion (vs. $1.29 billion expected)
- Net Loss: $110 million, improved from $360 million a year ago
Revenue soared to $1.36 billion, exceeding Wall Street forecasts and highlighting the company’s rapid expansion. CoreWeave’s revenue has more than doubled from $583.9 million in the same period last year — a sign that demand for AI infrastructure continues to outpace expectations.
However, the company’s 2025 revenue guidance of $5.05–$5.15 billion came in below the analyst consensus of $5.29 billion, raising concerns that CoreWeave may be facing short-term bottlenecks in scaling its operations.
Supply Delays Affect Near-Term Growth
CEO Michael Intrator attributed the weaker forecast to a delay in receiving computing supply from a third-party data center developer, which pushed some capacity expansions into Q1 2026.
“There was a problem at one data center that’s impacting us, but there are 41 data centers in our portfolio,” Intrator explained during the earnings call. “The overwhelming majority of the delay that you’re seeing should be taken care of within Q1 of next year.”
CoreWeave remains confident that these short-term delays will not impact its massive $55.6 billion backlog, which has grown from $50 billion just a few months earlier. The company now manages 2.9 gigawatts of contracted power, up from 2.2 GW in June 2025.
Major AI Partnerships Drive Long-Term Strength
Despite the guidance miss, CoreWeave continues to cement itself as a leading infrastructure provider for the global AI economy. During Q3, the company announced:
- A $6.5 billion expansion of its business with OpenAI
- A six-year deal with Meta worth up to $14.2 billion
- Its sixth hyperscaler contract, signaling continued confidence from large-scale cloud operators
These partnerships highlight CoreWeave’s growing importance in powering the next generation of AI applications — from large language models to cloud-based inference systems.
CRWV Stock Performance Since IPO
Since its March 2025 IPO, CoreWeave stock (CRWV) has been one of the best-performing new listings in the technology sector. Shares were priced at $40 during the IPO and closed Monday at $105.61, representing a staggering 164% gain in just over seven months.
By comparison, the Nasdaq Composite has gained roughly 32% over the same period, underscoring investor enthusiasm for AI-related companies. However, Monday’s after-hours drop suggests the market is becoming more selective and valuation-sensitive, even within the AI infrastructure boom.
Comparison with Other AI Stocks
The AI stock rally has seen massive gains in related companies such as Palantir (PLTR), which has surged on government AI contracts and strong earnings reports. However, analysts warn that CoreWeave’s valuation may now reflect overly optimistic growth assumptions, particularly as capital expenditures rise sharply.
CFO Nitin Agrawal stated that CoreWeave’s 2026 capital expenditures will more than double compared to 2025, reaching between $12 billion and $14 billion as the company builds new facilities — including its own data center infrastructure in Pennsylvania.
This aggressive expansion highlights both the opportunities and risks facing AI infrastructure providers like CoreWeave, which must balance explosive demand with massive upfront costs.
Long-Term Outlook: AI Cloud Demand Still Booming
While near-term profitability remains elusive, CoreWeave’s strategic positioning in the AI cloud and compute infrastructure market keeps investors bullish on the long-term potential of CRWV stock. Analysts expect the company to continue benefiting from exponential growth in generative AI workloads across industries.
“CoreWeave is at the heart of the AI revolution,” said one Wall Street analyst. “Delays in construction are temporary, but its customer base — OpenAI, Meta, and other hyperscalers — ensures consistent long-term demand.”
Conclusion: Short-Term Pressure, Long-Term Potential
Despite a dip in CoreWeave stock following weaker guidance, the company’s fundamentals remain strong. With a $55 billion backlog, expanding client list, and rising market share in AI infrastructure, CoreWeave (CRWV) continues to be a dominant force in the rapidly evolving AI economy.
Investors may face volatility in the near term as the company manages supply delays and high capital costs, but the long-term narrative remains compelling. For many, CoreWeave stock still represents one of the most promising plays in the AI cloud infrastructure sector — alongside established tech names like Nvidia and Palantir (PLTR).
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