Despite recent selloffs and merger controversy, top investor Harsh Chauhan sees CoreWeave as a high-potential AI infrastructure play with massive upside.
CRWV Faces Turbulence, But the Bull Case Is Growing
CoreWeave (NASDAQ: CRWV) hasn’t had a smooth ride in recent weeks. From shareholder opposition to its planned acquisition of Core Scientific to an earnings miss and lockup expirations, the stock has fallen nearly 27% since peaking in June.
- The Core Scientific merger, aimed at securing 1.3 gigawatts of power, has been challenged by key stakeholders including Two Seas Capital and Gullane Capital, who criticize the deal structure and valuation.
- Concerns also stem from high leverage, Q2 earnings underperformance, and a wave of insider selling after the post-IPO lockup expired.
Yet amid the noise, one prominent voice is calling the stock a long-term winner.
Harsh Chauhan: CRWV Is a ‘Screaming Buy’ for AI Growth Investors
Top investor Harsh Chauhan, is firmly bullish on CoreWeave—even after the recent dip.
“Investors looking to buy a top growth stock that’s capitalizing on the booming demand for AI infrastructure can consider taking advantage of the dip,” he writes.
Chauhan’s bullishness is based on three pillars:
- Skyrocketing AI demand
CoreWeave is deeply embedded in the AI ecosystem, with multibillion-dollar contracts from OpenAI, Meta, and Nvidia. - Explosive backlog growth
He estimates a $50+ billion revenue backlog, up from $3.5 billion in annual revenue, a sign that demand far outpaces current capacity. - Rapid capacity expansion
CoreWeave ended Q2 with 470 megawatts of active data center power, but has 2.2 gigawatts of contracted capacity—nearly 5x growth in the pipeline.
Fundamentals: High Valuation, But Improving Metrics
While valuation concerns are valid, Chauhan argues they’re offset by growth:
- CoreWeave trades at a Price-to-Sales (P/S) ratio of 19x, compared to Nvidia’s 28x.
- On a forward-looking basis, the 1-year P/S drops to 5.4x, reflecting the expected ramp-up in revenue as capacity comes online.
“CoreWeave’s valuation is attractive when you take its outstanding growth potential into account,” says Chauhan.
Merger Controversy Remains a Wild Card
The planned Core Scientific acquisition could unlock significant power resources, but also carries deal execution risk.
- Critics like Two Seas Capital label the deal as a “flawed process” with an “inadequate price.”
- Shareholder pushback could delay or derail the merger, potentially stalling CoreWeave’s capacity expansion timeline.
Still, if the deal goes through, it would secure more than double the company’s current available power, accelerating its ability to monetize its backlog.
Final Thoughts: A High-Risk, High-Reward AI Infrastructure Play
While CoreWeave’s recent setbacks and high valuation raise valid concerns, its role as a core infrastructure enabler in the AI revolution makes it one of the most compelling speculative growth plays on the market.
With power capacity scaling, top-tier AI clients, and a massive revenue backlog, CRWV may be volatile—but it’s certainly not standing still.