Yahoo Finance
Amid all the distrust between China and the United States concerning artificial intelligence, an endorsement from a Chinese brokerage for an American neocloud company is certainly noteworthy.
That is exactly what happened with CoreWeave (CRWV), when Chinese brokerage firm GF Securities initiated coverage on the former's stock with a “Buy.” Citing long-term demand, close relationships with major hyperscalers, and eventual profitability by 2028, the firm said this in a note to clients: “Backed by first-mover GPU deployment, exclusive AI-only focus, best-in-class efficiency, and LTAs with major AI hyperscalers, CoreWeave is positioned as a long-term winner in the AI infra boom.
We are positive on 1) accelerating demand for AI buildouts; 2) RPO that largely underpin our 2026–2027 revenue forecasts; 3) declining debt financing costs; 4) profitability to inflect sharply as large contracts mature; 5) new LTAs benefiting from higher GPU rental pricing.” Qualcomm Stock Is the Sleeping Giant of the AI Revolution.
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Sign up now! GF's optimism is certainly not misplaced, as CRWV stock is up 47.8% YTD.
What started as a cryptocurrency mining company has now become one of the world's largest neocloud players.
The story is akin to one of its closest partners and investors, Nvidia (NVDA), which pivoted from a company focused on graphics for gaming to becoming what it is today — the linchpin of the AI industry.
However, while I have recently discussed what makes CoreWeave unique, the company is also converting this uniqueness into customers.
And not just any customers, CoreWeave is the neocloud of choice for many of the largest hyperscalers in the world.
Notably, while the company's Nvidia connection is not there to hide from anyone, it is actually another tech titan that first onboarded CoreWeave.
Before other big tech players began aggressively courting specialized cloud providers, Microsoft recognized the potential in CoreWeave infrastructure to support its massive demand for AI reasoning and model training.
By 2024, this relationship had matured significantly, with Microsoft accounting for approximately 62% of the annual revenue of CoreWeave, providing the financial stability and credibility necessary for the firm to scale its data center footprint and procure high-end hardware from partners like Nvidia.
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