CoreWeave, Inc. (NASDAQ:CRWV) is one of the Most Promising AI Stocks to Buy Now. Needham downgraded the company’s stock from “Buy” to “Hold,” highlighting the valuation concerns despite the strategic benefits of the announced CORZ acquisition. The firm’s analysts opine that the acquisition can unlock between 150MW and 200MW of additional IT capacity, which is valuable for CoreWeave, Inc. (NASDAQ:CRWV)’s growing high-performance computing as well as AI workloads.
A scientist at a computer station, surrounded by a neural network of artificial intelligence code.
That being said, Needham is of the view that most of the benefits are already priced into CoreWeave, Inc. (NASDAQ:CRWV)’s stock, leading to the downgrade. The demand for CoreWeave, Inc. (NASDAQ:CRWV)’s platform remains strong and has been accelerating, with AI leaders seeking the highly performant AI cloud infrastructure needed for the most advanced applications. In Q1 2025, the company’s revenue backlog came in at $25.9 billion as of March 31, 2025.
The critical customer wins throughout AI labs, hyperscalers, and enterprises include a strategic deal with OpenAI, adding $11.2 billion in revenue backlog. Furthermore, the company saw rapid scaling of its purpose-built AI Infrastructure, which includes the addition of new compute capacity, totalling ~420 MW of active power and ~1.6 GW of contracted power at the end of the quarter.
While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.