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Investing.com - CoreWeave (NASDAQ:CRWV), currently valued at $69.5 billion, has secured a partnership with Poolside to provide over 40,000 GPUs under Nvidia GB300 NVL72 systems, according to a company announcement Tuesday. According to InvestingPro data, the company has shown remarkable momentum with a 235% return year-to-date, though current analysis suggests the stock is trading above its Fair Value.
While financial terms remain undisclosed, Evercore ISI estimates the deal could add approximately $5 billion to CoreWeave’s backlog, potentially bringing the company’s total backlog to over $55 billion. The firm noted that since this deal closed after the third quarter, Q3 ending backlog might be closer to $50 billion. With trailing twelve-month revenue of $3.5 billion and analysts forecasting 174% revenue growth this fiscal year, this deal could significantly impact the company’s growth trajectory.
CoreWeave will also serve as the anchor tenant for the first 250 megawatts of Poolside’s 2 gigawatt AI Data Center campus in West Texas, with an option to expand by another 500 megawatts. Evercore ISI calculates that the 40,000 GPU deployment might use approximately 100 megawatts of the initial capacity.
The data center lease expenses for the 250 megawatt capacity could approach $500 million annually, based on an estimated $160 per kilowatt per month pricing model. Evercore ISI indicated uncertainty about whether CoreWeave will recognize the GPU supply and data center agreements as separate transactions.
Evercore ISI maintained its Outperform rating and $175 price target on CoreWeave stock, citing several positives including backlog upside, customer diversification beyond hyperscalers, and sufficient capacity to potentially serve additional customers beyond Poolside. The broader analyst consensus shows targets ranging from $32 to $234, with detailed analysis available in the comprehensive InvestingPro Research Report, which provides deep-dive analysis of CoreWeave’s financial health, valuation metrics, and growth prospects.
In other recent news, CoreWeave announced the launch of Serverless RL, a fully managed reinforcement learning platform designed to streamline AI agent training. This new service is expected to enhance training efficiency, offering nearly 1.4 times faster training times and reducing costs by 40% compared to local GPU environments. The launch marks the first collaboration between CoreWeave and its recently acquired company, OpenPipe. Additionally, CoreWeave is planning a massive AI data center in West Texas in partnership with AI startup Poolside. The facility, named "Horizon," will utilize natural gas from the Permian Basin to power a data center with a two-gigawatt computing capacity.
Evercore ISI has reiterated its Outperform rating for CoreWeave, citing the company’s durable GPU cloud business model. The research firm highlighted CoreWeave’s multi-year take-or-pay noncancelable contracts, which have an average duration of four years, with recent deals extending to five years or more. In contrast, CoreWeave CEO Michael Intrator confirmed that the company will not revise its acquisition offer for Core Scientific, a bitcoin mining firm. Intrator stated that the current bid reflects CoreWeave’s valuation of Core Scientific, quelling investor expectations for a higher offer.
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