Coreweave Stock Bullish Potential: Here’s What You Need to Know

CoreWeave (NASDAQ: CRWV) has certainly made a mark since its IPO in March 2025, and its rapid growth has caught the attention of investors. 

From debuting at $40 per share to peaking near $187 by late July, the stock has shown impressive gains, but also faced significant volatility. 

If you're considering adding Coreweave stock to your portfolio or simply curious about its bullish potential, here’s everything you need to know before making any decisions.

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Coreweave IPO and Initial Trading Performance

CoreWeave’s IPO launched at $40 per share on March 27, 2025. The debut didn’t exactly set the world on fire, opening at $39 per share and closing at the offering price of $40. 

It wasn't until the third day of trading that the stock market started gaining traction, closing 31% higher than its IPO price at $52.57.

A Strong Start for CoreWeave

Despite the lukewarm debut, investors quickly realized the potential behind Coreweave stock. By mid-June 2025, the stock had surged by a 340% post-IPO rally, reaching its peak at $187 on June 20, 2025. 

This dramatic rise demonstrated that CoreWeave had a lot of momentum, driven by the burgeoning demand for AI hyperscalers and GPU-focused cloud infrastructure.

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Volatility and Price History: A Look at CoreWeave Stock Performance

While the early gains were exciting, the stock’s performance has also been marked by high volatility, something investors should be aware of.

Key Price Metrics:

• IPO Price: $40.00
• 52-Week High: $187.00
• 52-Week Low: $33.52
• Mean Closing Price: $101.41
• Median Closing Price: $108.74

The stock’s standard deviation of $47.80 indicates significant daily price fluctuations, making it a risky asset for those not comfortable with high volatility.

Volatility Outlook

The ±40% swings in CoreWeave’s stock price have become a common pattern, especially post-IPO. So, while there’s potential for huge returns, investors need to brace for sharp price movements. 

With the lockup expiry in September 2025, there's a chance the stock could face further pressure, especially if early investors start cashing out.

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CoreWeave’s Financial Performance: Growth vs Risk

CoreWeave’s financial performance reflects a combination of impressive growth and a significant debt burden.

Rapid Revenue Growth

In 2024, CoreWeave reported $1.92 billion in revenue, a staggering 737% year-over-year increase. Even more impressive was Q1 2025, where CoreWeave posted $981.6 million in revenue, up 420% year-over-year and exceeding analysts' expectations.

Despite the rapid growth, CoreWeave still posted a net loss of $863 million. The company has a high gross margin of 74.2% TTM, which speaks to its profitability potential if it can manage its operating costs more efficiently.

Debt Levels

One of the primary concerns surrounding Coreweave stock is the company’s $13 billion in debt, with interest rates ranging between 10–15% on senior notes. 

This heavy leverage could create challenges, especially if the company continues to rack up debt at the same pace. It's essential for investors to monitor the company’s ability to reduce its debt load over time, or else the stock could face pressure.

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Key Drivers of CoreWeave’s Growth

So, why has Coreweave stock performed so well despite the high volatility? A few key factors are driving its growth potential.

1. AI Hyperscaler Infrastructure

CoreWeave is positioning itself as a leader in the rapidly growing AI hyperscaler market. The company’s GPU-focused cloud infrastructure is optimized for generative AI and high-performance computing (HPC), which has gained immense traction in recent years. 

CoreWeave’s technology is ideal for AI workloads, which is why companies like Microsoft (62% of CoreWeave’s 2024 revenue) and OpenAI have become major clients.

2. Partnerships and Investment

Another significant growth factor for Coreweave stock is its strategic partnerships. Notably, the company has secured multi-billion-dollar commitments from OpenAI and has Nvidia as a cornerstone investor. 

These high-profile relationships boost CoreWeave’s credibility and create significant revenue opportunities going forward.

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Risks and Considerations: Should You Invest in CoreWeave?

While the potential for growth is evident, CoreWeave also carries significant risks that investors should carefully consider.

1. High Leverage

With around $13 billion in debt and a debt/equity ratio of 286%, CoreWeave is highly leveraged. If the company cannot generate sufficient revenue to manage its debt load, the stock could face downward pressure.

2. Customer Concentration

CoreWeave’s reliance on Microsoft and OpenAI for a large portion of its revenue makes it vulnerable to any shifts in these relationships. A drop in business from these clients could significantly impact the company's bottom line.

3. Valuation Concerns

CoreWeave’s P/E ratio of –51x and elevated forward multiples compared to its peers suggest that the stock may be overpriced. Some analysts believe that the company’s valuation has outpaced its actual performance, which could result in a correction.

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Conclusion: Is CoreWeave Stock Worth the Risk?

CoreWeave stock is certainly intriguing for investors looking to capitalize on the booming AI hyperscaler market. 

Its rapid revenue growth, strategic partnerships, and high demand for its GPU-focused cloud infrastructure position it as a potential long-term winner. However, high volatility, significant debt, and customer concentration issues cannot be ignored.

For investors seeking exposure to AI infrastructure and who are willing to take on some risk, CoreWeave stock offers strong upside potential. But for those more risk-averse, it may be wise to wait for more stability before diving in.

FAQ

What is the main reason CoreWeave’s stock surged post-IPO?

CoreWeave's stock surged due to its position as a key player in AI hyperscaler infrastructure, particularly with partnerships from Microsoft and OpenAI.

How risky is investing in CoreWeave stock?

CoreWeave stock is highly volatile with a heavy debt load. It carries significant risk, especially due to customer concentration and its high leverage.

How can I buy CoreWeave stock?

CoreWeave stock (CRWV) can be purchased on major stock exchanges, just like any other publicly traded company. 

When did CoreWeave go public?
CoreWeave launched its IPO on March 27, 2025, at $40 per share.

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