Specialist AI cloud provider CoreWeave Inc. (NASDAQ:CRWV) is on a “frightening” growth trajectory, with revenue projected to scale to “mid-$20s billion” by 2028, according to a leading digital infrastructure analyst. This forecast suggests its revenue could multiply “nearly 5x” from its 2025 projection of $5.3 billion.
Check out CRWV’s stock price here.
CoreWeave Could Scale Mid-$20 Billion In Revenue By 2028
The “unbelievable” forecast was shared by Nick Del Deo, an analyst at MoffettNathanson, on a recent episode of “The Real Eisman Playbook” podcast. The discussion highlighted CoreWeave’s explosive emergence as a critical infrastructure player in the artificial intelligence boom.
To put the company’s meteoric rise in context, Del Deo noted that CoreWeave’s total revenue in 2022 was approximately “$16 million.” The leap from that figure to a projected $5.3 billion in 2025, and then to a potential “mid-20s billion” by 2028, underscores the unprecedented demand for its services.
“It’s frightening. It’s unbelievable,” remarked the experts on the show.
See Also: CoreWeave Turns $50 Million Convertible Notes Into $12.5 Billion AI Jackpot For This Hedge Fund
From ‘Crypto Miner’ To AI Powerhouse: In The Same League As AT&T, Walmart
Del Deo noted that CRWV began as a crypto miner around 2017, and it has since pivoted to become a key partner for major AI players.
It has “exclusively leased its facilities” and fills them with specialized GPU equipment, attracting massive customers like Microsoft Corp. (NASDAQ:MSFT), which currently accounts for 70% of its business, and OpenAI.
The scale of this build-out requires a level of spending Del Deo called “astronomical,” with a projected capital expenditure of “$21 to $23 billion” this year alone.
“In just a handful of years, their capital budget is in the same league as AT&T, Walmart, Exxon Mobil,” Del Deo stated, emphasizing the sheer scale of the operation. “There’s nothing else like CoreWeave out there.”
Big Tech’s Proprietary Businesses Could Wrestle CRWV
Despite the massive opportunity, Del Deo cautioned that CoreWeave faces future competition from the “big battleship businesses” of cloud computing, such as Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc.‘s (NASDAQ:GOOG) (NASDAQ:GOOOGL) Google, and Microsoft itself.
He suggested that as chip constraints ease, these incumbents will become “more effective” in the space, which could eventually “put some pressure on CoreWeave’s returns over time.”
CRWV Logs Astronomical Returns Since Listing
Shares of CRWV have returned 203.83% since its listing in March. However, it was down 7.15% over the last month.
It maintains a stronger price trend over short and long terms, with a poor trend in the medium term. Additional performance details, as per Benzinga’s Edge Stock Rankings, are available here.
On Thursday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading in a mixed manner
Meanwhile, on Wednesday, the S&P 500 index ended 0.53% lower at 6,699.40, whereas the Nasdaq 100 index fell 0.99% to 24,879.01. On the other hand, Dow Jones declined 0.71% to end at 46,590.41.
Read Next:
- CoreWeave Is A ‘Debt-Fueled GPU Rental Business,’ Says Kerrisdale, Shorting CRWV Amid Criticisms Of Valuation-Boosting ‘Circle Jerk’ With Nvidia
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga
Photo courtesy: T.-Schneider / Shutterstock
