Why CoreWeave Could Be the Overlooked Gem in AI Infrastructure

The artificial intelligence revolution is reshaping global markets, yet many investors remain fixated on the most visible players-NVIDIA, Microsoft, and the like. In this frenzy, CoreWeave, a critical but underappreciated participant in the AI compute arms race, may represent a compelling contrarian opportunity. With a staggering $55.6 billion in revenue backlog as of September 30, 2025, and a strategic alignment with industry titans like Meta, OpenAI, and NVIDIA, CoreWeave (NASDAQ: CRWV) is poised to capitalize on the surging demand for AI infrastructure. For investors willing to look beyond the hype, the company's valuation appears to trade at a discount to its long-term potential.

A $55.6 Billion Backlog: A Barometer of AI Demand

CoreWeave's backlog is not merely a financial metric but a testament to the structural shift in computing demand. The company has secured multi-year contracts totaling $55.6 billion, including a $14.2 billion agreement with Meta and a $22.4 billion deal with OpenAI according to financial reports. These commitments reflect the hyperscalers' urgent need for GPU capacity to train and deploy increasingly complex AI models. As stated in Q3 2025 results, the backlog includes "remaining performance obligations and estimated future revenue contingent on incremental capacity delivery," underscoring the company's role as a critical enabler of the AI ecosystem.

This backlog is particularly significant given the broader market dynamics. Market projections indicate the AI infrastructure sector will grow at a 26.6% annualized rate through 2034, reaching $500 billion in value. CoreWeave's ability to secure such large-scale contracts positions it as a beneficiary of this expansion, even as competitors like Microsoft and Amazon double down on their own cloud offerings.

Strategic Partnerships and Competitive Differentiation

CoreWeave's partnership with NVIDIA, a $6.3 billion strategic collaboration to scale GPU infrastructure, further cements its relevance. NVIDIA's dominance in AI hardware-particularly its H100 and upcoming Blackwell GPUs-makes this alliance a strategic win. By aligning with NVIDIA, CoreWeave gains access to cutting-edge technology, ensuring its infrastructure remains competitive in an industry where obsolescence is a constant risk.

Moreover, CoreWeave's recent launch of CoreWeave Ventures-a subsidiary focused on investing in AI startups- demonstrates a forward-looking approach to ecosystem building. This move not only diversifies the company's revenue streams but also strengthens its position as a hub for innovation in the AI space.

Valuation: A Discount to Long-Term Potential

Despite its rapid growth, CoreWeave trades at a price-to-sales ratio of 8.8, in line with peers like Palantir Technologies and SoundHound AI. This multiple appears reasonable when considering the company's projected earnings power. Analysts estimate that CoreWeave will achieve profitability by 2026, with earnings per share (EPS) of $4.09 by 2028. At 20 times this projected 2028 EPS, the stock would trade at a forward multiple of 20x, significantly below the AI sector's average of 36.6x (as seen with Oracle) and even SpaceX's 53x according to equity analysis.

The company's aggressive capital expenditures-$20–23 billion in 2025-may raise concerns about debt load, but these investments are directly tied to fulfilling its $55.6 billion backlog. For a business with such high-growth potential, prudent leverage is a feature, not a bug. The key question is whether CoreWeave can maintain its execution momentum amid rising competition from new entrants like Iren and Nebius according to market analysis. Given its first-mover advantage and deep partnerships, the answer appears to be yes.

Contrarian Logic in a Crowded Market

The AI sector is no longer a niche; it is a crowded battlefield. Yet CoreWeave's focus on pure-play AI infrastructure-unlike the diversified models of Microsoft or Alphabet-positions it to outperform in a scenario where specialization becomes a premium asset. Brad Gerstner, a prominent venture capitalist, has broken from the crowd to back CoreWeave, citing its "rapid revenue growth and strategic role" in supporting AI solutions. His rationale hinges on the idea that the market is underestimating CoreWeave's ability to scale profitably.

With revenue expected to surge from over $5 billion in 2025 to $29 billion by 2028 according to market projections, CoreWeave's trajectory mirrors the early days of cloud computing. The company's current valuation, while not cheap, is justified by its growth profile and the structural tailwinds of the AI revolution. For contrarian investors, the risk-reward asymmetry is compelling: a relatively small stake in a business that could dominate a $500 billion market.

Conclusion: A Timely Opportunity

CoreWeave's $55.6 billion backlog, strategic partnerships, and favorable valuation metrics collectively paint a picture of a company that is both a beneficiary of and a catalyst for the AI revolution. While the road ahead is not without challenges-rising competition, capital intensity, and macroeconomic risks-the company's execution track record and alignment with industry leaders suggest it is well-positioned to navigate these hurdles. For investors seeking exposure to AI infrastructure at a discount to its long-term potential, CoreWeave offers a rare and timely opportunity.