CoreWeave's Debt-Fueled Growth Raises Concerns About Long-Term Prospects

CoreWeave (CRWV) is growing rapidly, with $104 billion in backlog revenue and a recent quarter revenue of $2.58 billion, more than double its earnings from a year ago.

The company's scale-as-fast-as-possible business model involves buying advanced chips from Nvidia, installing them in data centers, and renting out computing power to companies building and running artificial intelligence (AI).

However, delivering on this revenue growth requires significant amounts of money, which CoreWeave is funding through heavy borrowing. The company had approximately $35 billion in debt at the end of June, up from about $21 billion at the end of 2025.

Wall Street analysts have a wide range of price targets for CoreWeave stock, with some as high as $250. However, predicting the future of the company is difficult due to its dependence on interest rates and AI demand.