This Nvidia-Backed Artificial Intelligence (AI) Infrastructure Company Is Solving a Key Problem. It Could Easily Become a Multibagger Stock in the Next 3 Years
Publish Date: 2026-05-18 17:46:00
Source Domain: www.theglobeandmail.com
Key Points from the Article on CoreWeave:
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Rapid Growth and Expanding Backlog:
- CoreWeave is experiencing rapid growth, with a significant increase in its revenue backlog. Revenue in Q1 2026 surged by 112% year-over-year to $2.1 billion, while the backlog increased by an astounding 284% to $99.4 billion.
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Strong Strategic Partnership with Nvidia:
- CoreWeave’s close relationship with Nvidia, which invested $2 billion in the company, is driving its growth. The data centers are predominantly powered by Nvidia’s GPUs and server processors.
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Aggressive Data Center Expansion:
- The company is aggressively expanding its data center capacity and securing power agreements to keep up with the growing demand for AI infrastructure. Active data center capacity grew from 420 MW in Q1 2025 to 1 GW in Q1 2026, and it aims to reach 8 GW by 2030.
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High Potential for Multibagger Growth:
- Analysts predict significant revenue growth, with projections showing revenue reaching $39.3 billion by 2028. This could result in a market cap as high as $220 billion, positioning CoreWeave as a potential multibagger.
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Immediate Cost Increases but Long-term Margin Improvement:
- While the aggressive expansion will lead to higher costs and losses in the near term, it is expected to boost margins significantly as the company reaches its build goals and starts generating substantial revenue from new data centers.
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Recent Stock Market Reaction:
- Despite a sharp pullback in stock price after quarterly earnings, due to not meeting Wall Street’s expectations, the long-term outlook remains bullish, given the company’s strategic positioning and growth trajectory in the AI infrastructure market.
