An analyst on Seeking Alpha argues that the recent 57% correction in CoreWeave stock stems from unfounded fears regarding debt and competition. The analysis posits that the market underestimates the durability of AI demand.
Demand is specifically robust for high-performance inference workloads, which will absorb CoreWeave’s expanding GPU fleet. The firm boasts "bare metal" access to hardware, providing a key performance advantage over traditional cloud providers.
CoreWeave is undergoing significant expansion, currently operating 590 megawatts (MW) of active power. A contracted pipeline of 2.9 gigawatts (GW) is expected to come online within the next 12 to 24 months, potentially accelerating revenue growth beyond current consensus.
The report highlights recent debt refinancing at a lower interest rate (SOFR + 4.00%). This move signals de-risking and establishes a path toward deleveraging. The analyst suggests a potential 53% valuation upside if execution continues, though this analysis follows SEC disclosures of significant insider stock sales dating back to late December.