Why CoreWeave Could Be the Next 10X AI Stock

Published Date : 27/09/2025 

CoreWeave's $6.3 billion capacity agreement with Nvidia has reduced downside risk, and its $30 billion backlog offers strong revenue visibility. The company is a prime candidate for a tenfold return in the next decade. 

Plenty of investors dream of finding a rare stock that can yield a stellar, tenfold return. To achieve this, a company must grow revenue and profitability at extraordinary rates while operating in a market large enough to support such growth. Artificial intelligence (AI) is one of the few booming industries today that can realistically drive companies to a tenfold increase in the next decade.

I believe CoreWeave (NASDAQ: CRWV) is an AI stock with the potential to grow its share price 10x over the next decade. With a current market capitalization of about $66 billion, the company would need to be valued at $660 billion by the mid-2030s to deliver a 10x return. While this prediction seems aggressive, it is not implausible.

CoreWeave's revenue surged 207% year over year to top $1.2 billion in the second quarter of fiscal 2025 (ending June 30). Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also more than tripled year over year to $753 million, while adjusted EBITDA margins were an impressive 62%.

CoreWeave also ended the second quarter with $30.1 billion in contracted backlog, double what it held at the start of 2025. This backlog offers vital clues to the company's impressive revenue potential over the next several years. The contracted pipeline includes a $4 billion contract expansion with OpenAI, contract expansions with two hyperscaler customers, and new customer wins, including large enterprises and AI start-ups.

Based on this strong demand, management now expects fiscal 2025 revenue to be in the range of $5.15 billion to $5.35 billion, and adjusted operating income in the range of $800 million to $830 million.

The AI cloud market is currently supply-constrained, with demand growing much faster than available capacity. CoreWeave CEO Michael Intrator claimed that the biggest challenge in building new data center capacity is securing powered shells (data center buildings already connected to the electrical grid and capable of handling massive power loads), which are necessary to support the infrastructure at the scale customers require.

CoreWeave is focusing on vertical integration to scale AI cloud infrastructure while controlling costs. This strategy, combined with the $6.3 billion capacity agreement with Nvidia, has significantly reduced CoreWeave’s downside risk. The company’s strong financial performance and robust backlog position it well to capitalize on the rapidly growing AI market.

In summary, CoreWeave's strategic position, strong financials, and significant backlog make it a compelling investment for those looking for a stock with the potential to deliver a 10x return in the next decade. 

Frequently Asked Questions (FAQS): 

Q: What is CoreWeave's current market capitalization?

A: CoreWeave's current market capitalization is about $66 billion.

Q: What is the projected 10x return for CoreWeave?

A: To achieve a 10x return, CoreWeave would need to be valued at $660 billion by the mid-2030s.

Q: What is CoreWeave's revenue growth in the second quarter of fiscal 2025?

A: CoreWeave's revenue surged 207% year over year to $1.2 billion in the second quarter of fiscal 2025.

Q: What is CoreWeave's contracted backlog as of the second quarter of fiscal 2025?

A: CoreWeave's contracted backlog ended the second quarter of fiscal 2025 at $30.1 billion, double what it held at the start of 2025.

Q: What is the biggest challenge in building new data center capacity for CoreWeave?

A: The biggest challenge in building new data center capacity for CoreWeave is securing powered shells, which are data center buildings already connected to the electrical grid and capable of handling massive power loads. 

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