CoreWeave (NASDAQ:CRWV) shares moved higher after the AI cloud-computing startup reported significant revenue growth for the first quarter and raised its full-year outlook.
First quarter revenue surged 420% year-over-year to $981.6 million, ahead of analyst expectations of $857 million.
The company’s net loss widened to $314.6 million from $129.2 million in the year-ago quarter, partly attributed to $177 million in stock-based compensation related to its IPO.
For 2025, CoreWeave now expects revenue between $4.9 billion and $5.1 billion, above the $4.61 billion analyst consensus, alongside capital expenditures projected between $20 billion and $23 billion, higher than the anticipated $18.35 billion.
It was also revealed that CoreWeave has signed an additional $4 billion cloud deal with OpenAI, which boosted its shares. CoreWeave shares added 5.3% at about $71 late morning on Thursday.
“Our strong first quarter financial performance caps a string of milestones including our IPO, our major strategic deal with OpenAI as well as other customer wins, our acquisition of Weights & Biases and many technical achievements," CoreWeave CEO Michael Intrator said in a statement.
"Demand for our platform is robust and accelerating as AI leaders seek the highly performant AI cloud infrastructure required for the most advanced applications.”
Wedbush analysts noted that CoreWeave’s increasing AI revenues were “clearly a positive sign for the broader AI complex.”
“We see the lighter Q1 spend and sharp increase moving forward as likely in part tied to initial struggles with GB200 server production that now appear to be resolving/resolved, with this outcome another positive datapoint for Nvidia,” they wrote.
The analysts noted that Dell and Supermicro are significant server suppliers to CoreWeave, and the increasing spending by CoreWeave throughout the year could bode well for Supermicro’s 2025 revenue outlook.
They also believe that private firms VAST and DDN are CoreWeave’s main storage providers, while HPE and Pure Storage have recently reported growing engagement with the large-scale NeoCloud.