CoreWeave: The AI's Gold Rush's Expensive Shovel

2026-05-08 12:41:08 ET

Investment Thesis

CoreWeave, Inc. ( CRWV ) reported strong revenue growth in Q1 '26 , and the market is reacting negatively for the wrong reasons. Last quarter's results confirm my expectations of deepening losses, reinforcing my belief that the company is underwriting its cloud contracts at extremely thin margins that don't justify the effort. If anything, the disappointing revenue outlook should be considered positive because it opens the door for speculation that the company is becoming more selective regarding its underwriting....

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