$CoreWeave, Inc.(CRWV)$ is a a hardy scavenger, starting out as a crypto mining company (adding to the hardware shorting during that period), then pivoting into cloud computing when crypto crashed, and is now further buoyed by the AI exuberance.
And the biggest killer in this AI bubble that has investors shivering is the CAPEX, but it has had a reasonable headstart on companies like Oracle who want to cash in on the hype (but face all the challenges like funding, bottlenecks in hardware availability, etc.).
Much has been said about the circular economy problem, where the hardware has great value, being boosted by the growing AI bubble, which is then used as collateral to secure more funding for even more AI related hardware acquisition, and further infrastructure build up. Should the bubble pop, the mess would be spectacular to say the least.
Who really knows when the end would come, but I am overly conservative, I believe the results will still be coming, and I will take profit on any good results or sudden surges (especially with earnings coming soon), then immediately buy back when things mellow out, hoping to catch the next wave upwards, without having an all-in mentality.
Crwv will likely do well, I do not see anything significantly Impacting this (apart from the bubble popping). Their business model of being the cloud computing provider of big companies (Microsoft accounting for 60% of Crwv revenue) will still be very attractive, it is after all a way for the big boys to "outsource" parts of their AI operations to avoid a bigger flameout when the bull run ends for good.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
