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CoreWeave went nationalist past year, and it rapidly became 1 of the hottest tech stocks to own.
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Its income skyrocketed arsenic it works intimately with galore apical tech companies.
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But CoreWeave has struggled with profitability arsenic its involvement expenses are incredibly high.
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10 stocks we similar amended than CoreWeave ›
Demand for cutting-edge chips has been done the roof, which helped propel the valuation of galore companies progressive successful artificial quality (AI) to sky-high levels. Rather than pursuit Nvidia and different stocks that person already achieved important gains, investors person been pivoting to different stocks, which whitethorn person much country to run.
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One of those stocks with country to tally is CoreWeave (NASDAQ: CRWV), which rents retired computing capabilities to companies, giving them entree to Nvidia's latest chips. When its shares went nationalist successful 2025, it rapidly surged successful value, becoming 1 of the hottest caller AI stocks to own. With unthinkable income numbers and maturation opportunities related to AI, it seemed similar a no-brainer bargain for maturation investors.
However, implicit the past six months, it's been a acold antithetic communicative for CoreWeave, arsenic the banal has mislaid astir 30% of its worth during that time. It's besides down much than 50% from its 52-week precocious of $187. Could present beryllium a large clip to bargain the stock, oregon is much diminution coming?
CoreWeave experienced a slowdown successful its maturation complaint successful caller quarters, but it's hard not to person expected that, fixed conscionable however incredibly beardown it had been past year. Its latest results are inactive impressive, however, with the institution much than doubling its revenue.
Back successful November, erstwhile it released its latest quarterly results (for the play that ended successful September), the tech institution said that its gross backlog astir doubled to implicit $55 billion, highlighting the beardown request the concern is seeing. It benefited from beardown request from hyperscalers, including Meta Platforms, with which it precocious entered into a multi-year woody worthy much than $14 cardinal to assistance the societal media institution negociate its AI workloads.
The AI-powered request resulted successful phenomenal maturation for CoreWeave. But investors whitethorn person inactive been taking a 2nd look astatine the stock, fixed its inflated valuation.
Although CoreWeave has been an breathtaking maturation banal to put in, it has besides been a precise costly 1 to buy, with its marketplace headdress astatine 1 constituent reaching $88 billion.
And portion it achieved immoderate terrific top-line growth, its bottommost enactment remains firmly successful the red. During the archetypal 9 months of 2025, the institution incurred nett losses totaling $715.3 million. That's an betterment from $812.1 cardinal successful losses implicit the aforesaid play successful the erstwhile year, but it inactive paints a troubling representation wide for the company.

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