‘This is Aggressive’ – Whale Investor Drops Bombshell Take on CoreWeave’s Skyrocketing Stock

Cloud infrastructure play CoreWeave just got slapped with a reality check from Wall Street's elite.

Bulls vs. bears in the AI arms race

The GPU-hoarding upstart's valuation now rivals legacy tech giants—despite burning cash faster than a crypto miner in 2021. One top fund manager calls the vertical move 'mathematically unhinged' while quietly increasing their position.

When asked about the disconnect between fundamentals and price action, the investor shrugged: 'The market can stay irrational longer than you can stay solvent.' Classic Wall Street—talk your book while the bubble inflates.

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CoreWeave serves as a prime example of a company that read the tea leaves and acted accordingly. The company – which started out as a crypto miner – made the decision to rent out its GPU hardware, a move that paid off in spades when the AI revolution heated up in earnest.

While things have been going quite well for CoreWeave, one top investor known by the pseudonym The Asian Investor believes that the good times could be winding down.

“CoreWeave is now very aggressively valued and may expose investors to a valuation draw-down once the initial excitement dies down,” predicts the 5-star investor, who is among the top 2% of TipRanks’ stock pros.

The Asian Investor explains that CoreWeave’s aggressive, $20 billion capex spending plans will likely be financed via debt offerings, making the company’s risk profile not super appealing. Moreover, the company reported a net loss of $314.6 million in Q1 2025. Taking on additional debt, The Asian Investor adds, WOULD only cause the company’s profitability to suffer further.

“Because of CoreWeave’s dependence on outside capital to finance the expansion of its Data Center footprint, it is likely that the AI Cloud computing platform will continue to rack up considerable losses going forward,” the investor notes.

In addition, when it comes to the company’s valuation, the recent run up in share price has driven CRWV to expensive levels. The Asian Investor cautions that CoreWeave’s current 28.8x book value is significantly higher than competitors such as Nebius, which trades at 3.6x book value.

Therefore, despite the company’s promising revenues, The Asian Investor deems it better to avoid this one for now.

“The combination of potentially accelerating debt growth with a very high valuation factor makes CoreWeave’s shares a potentially risky investment with considerable downside potential,” concludes The Asian Investor, who rates CRWV a Sell. (To watch The Asian Investor’s track record, click here)

Wall Street, however, offers a more nuanced picture. With 6 Buys, 11 Holds, and 1 Sell rating, CRWV enjoys a Moderate Buy consensus rating. However, its 12-month average price target of $78.53 has a downside close to 55%, indicating that even the bulls foresee losses up ahead. (See)

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