CoreWeave (NASDAQ: CRWV), one of Nvidia’s (NASDAQ: NVDA) stellar portfolio companies, saw its share price plunge in after-hours trading despite posting impressive revenue growth for Q2 2025.
The artificial intelligence (AI) cloud data center firm closed Tuesday’s session at $148.75, up more than 6%, but quickly tumbled 10% after the bell to $133. Even with the pullback, CoreWeave stock remains one of 2025’s standout performers, with CRWV shares up over 270% since its April IPO.
Investors react to CoreWeave earnings
Notably, the CoreWeave shares sell-off came despite the AI firm beating Wall Street’s second-quarter expectations on both earnings and revenue, but disappointed with a wider net loss than expected.
The company reported a loss of $0.21 per share before certain costs, better than analysts’ estimate of a $0.22 loss. Revenue surged 206% year-over-year to $1.21 billion, exceeding forecasts of $1.08 billion.
However, the net loss reached $290.5 million, above the expected $199 million, with an adjusted loss of $131 million and a gross margin of -11%. A year earlier, the adjusted loss was $5 million with a -1% margin.
Reacting to the results, CEO Michael Intrator highlighted “continued momentum” across the business, citing unprecedented demand for AI infrastructure.
Additionally, CoreWeave’s growth remains constrained by power supply limitations, leaving it with a $30.1 billion revenue backlog.
The company is also expanding aggressively, having closed a $1.4 billion acquisition of AI monitoring startup Weights & Biases and pursuing a $9 billion purchase of Core Scientific, expected to close later this year.
CRWV bullish outlook
Meanwhile, the earnings report followed a bullish call from JPMorgan analyst Mark Murphy, who doubled his price target from $66 to $135 and maintained an ‘Overweight’ rating, citing massive AI growth potential and a five-year, $11.9 billion deal with OpenAI.
Murphy, however, cautioned about high debt levels, volatile bookings, and the risk of shrinking margins as competitors gain access to similar Nvidia GPUs, once CoreWeave’s key competitive advantage.
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