Nvidia-backed (NVDA) AI data center company CoreWeave (CRWV) is slated to release earnings after the bell Wednesday, its first report since a volatile public debut in March.

CoreWeave is one of the largest holders of Nvidia’s graphics processing units and rents its data center capacity to Big Tech firms such as Microsoft (MSFT) and Meta (META) as they scramble to secure coveted Nvidia chips to power their artificial intelligence ambitions.

The company raised $1.5 billion in its IPO in March — much lower than the $4 billion it had initially hoped to raise — with the stock whipsawing as Wall Street and investors weighed its risky financials against bullish outlooks for AI demand. CoreWeave stock is up 66% since the company's market debut.

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Seven analysts tracked by Bloomberg hold a Buy rating on the stock, while nine hold Neutral ratings. Hedgeye Risk Management holds a short position on the stock.

Ahead of its earnings, DA Davidson analyst Gil Luria said investors would be watching CoreWeave’s commentary about what he called its “risky” capital structure, high customer concentration, and AI demand.

CoreWeave has a significant amount of debt: roughly $12 billion worth of debt commitments with high interest rates of 10% to 14%, according to Luria, who holds a Neutral rating on the stock. CoreWeave uses its debt, borrowed against its store of Nvidia GPUs as collateral, to buy more Nvidia chips.

“ The risk is this is a company that is borrowing at extraordinarily high interest rates in order to buy a product that depreciates very rapidly in terms of its economic value,” Luria told Yahoo Finance in an interview Wednesday.

Some 77% of CoreWeave's 2024 revenue came from just two customers, according to regulatory filings, with 62% coming from Microsoft (MSFT). And despite revenue hitting roughly $2 billion that year, the company still lost nearly $1 billion, according to a March filing with the Securities and Exchange Commission.

Some analysts maintain that booming AI demand means CoreWeave will succeed. Barclays analyst Raimo Lenschow, who holds an Overweight rating on the stock, said he expects CoreWeave’s first quarter results will be “healthy” due to “strong AI demand,” pointing to Microsoft’s recent earnings report, which beat expectations as the company reaffirmed its plan to spend $80 billion on AI investments in 2025.Michael Intrator, Founder & CEO of CoreWeave, during the company's IPO at the Nasdaq Market, in New York City on March 28, 2025. REUTERS/Brendan McDermid·REUTERS / Reuters

Macquarie analyst Paul Golding echoed the sentiment, saying CoreWeave’s “competitiveness, together with the outlook for the [AI] space, drives scope for further growth.”

Overall, analysts tracked by Bloomberg expect CoreWeave to report a first quarter adjusted loss per share of $0.16 and quarterly revenue of $862 million, according to consensus estimates. Looking further ahead, analysts expect its loss per share will shrink to $0.02 in the second quarter and estimate that revenue will grow to more than $1 billion.

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After falling to a closing price low of $35 in April, CoreWeave shares have soared more than 50% over the past month, trading at $66 Wednesday.

DA Davidson’s Luria maintained skepticism ahead of CoreWeave’s earnings report.

“As long as this demand for AI services continues to grow exponentially, [CoreWeave will] be fine because Microsoft and OpenAI will need the extra [data center] capacity and companies like OpenAI will be able to pay for this extra capacity.”

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at [email protected].

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