CoreWeave is one of the most misunderstood stocks in the entire AI buildout and the market is making a classic mistake o…
Milk Road AI Twitter · Milk Road AI (@MilkRoadAI) · 2026-06-26
Milk Road AI argues CoreWeave is undervalued despite $25 billion in debt, citing a $99.4 billion contracted revenue backlog, 153% year-over-year revenue growth, and purpose-built GPU infrastructure that outperforms hyperscaler retrofits for AI workloads.
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Extraction
Topics: ai-infrastructureneocloudgpu-computingstock-analysiscloud-computing
Claims
- CoreWeave generated $2.08 billion in Q1 2026 revenue, more than double the same quarter a year ago.
- CoreWeave holds $99.4 billion in contracted revenue backlog as of March 2026, with over $40 billion in new customer commitments booked in Q1 alone.
- CoreWeave's debt model mirrors asset-backed financing used by airlines and utilities, matched against long-duration contracted cash flows rather than speculative growth.
- CoreWeave's infrastructure was built ground-up for Nvidia GPU clusters, giving it latency and cost-per-model-run advantages over hyperscalers like AWS and Azure that retrofitted CPU architectures for AI.
- Nvidia invested an additional $2 billion in CoreWeave stock and committed to a joint 5-gigawatt AI factory expansion, granting CoreWeave preferential access to new GPU generations.
Key quotes
"the losses are a function of the rate at which we're growing." — CEO Michael Intrator
A $99 billion backlog company generating 153% revenue growth, with operating leverage accelerating in H2 2026 and profitability expected in 2027, trading at half its peak valuation, that is the setup.
CoreWeave built its entire networking, cooling, and orchestration stack around Nvidia GPU clusters from day one.