CoreWeave (NASDAQ: CRWV) is a key player in AI infrastructure, focusing on providing top AI computing hardware. Its revenue hit $4.3 billion in the last year, up 133%. However, it holds a $56 billion revenue backlog, with $22 billion expected in the next 24 months, projecting a revenue doubling. Major clients like Microsoft and Meta Platforms are using CoreWeave’s services to boost their data centers.

Despite impressive growth, one concern for investors is CoreWeave’s profitability and widening losses. With a free cash flow outflow of $8 billion in Q3, the lack of profitability is a red flag. Investors are torn between CoreWeave’s growth potential and its current profitability issues. While the company has big clients and growth projections, the lack of profitability and short GPU lifespans pose risks.

Investors should weigh CoreWeave’s growth against its lack of profitability. While the AI trend is strong, GPU lifespans are short, and the company needs to generate positive cash flows soon. If CoreWeave can become profitable and sustain growth, it could be a good investment. Currently, its lack of profitability makes it a risky proposition.

Read more at Yahoo Finance: 56 Billion Reasons to Buy CoreWeave’s Stock (and 1 Reason to Avoid It)