According to Morgan Stanley's August Q2 performance report, CoreWeave added 500 MW of net active electricity in a single quarter, more than any quarter in history, more than three times the same period last year, and management reiterated its target of at least 8 GW by 2030. FY26's median revenue guide increased 2% to US$12.4 billion to US$13.2 billion, and ARR increased its median value by 3% to US$18.5 billion to US$18.5 billion. The company raised the median annual capital expenditure guide by 12% to US$35.5-39 billion. The Q3 capital expenditure guide was US$11.5 billion to US$13.5 billion, higher than the market forecast of US$10 billion. The managed inference platform ARR grew from $1 million to over $100 million, and is expected to reach at least $250 million by the end of the year. According to the research report, the Q2 adjusted operating margin was about 8% higher than expected, but the Q3 profit margin guide of 5.8%-7.2% was lower than market expectations, and the Q4 profit margin needed to be greatly increased to achieve the full-year guideline. Damo expects CoreWeave FY27's operating profit margin to be 15.9%, FY28 to be 22.4%, free cash flow will remain negative until 2028, and debt is expected to rise to about 38 billion US dollars by the end of 2026. Damo maintains an equal-weight rating and a target price of $99. It believes that demand for GenAI data centers is strong, but high debt and customer concentration are key constraints that the valuation cannot break through.

According to Morgan Stanley's August Q2 performance report, CoreWeave added 500 MW of net active electricity in a single quarter, more than any quarter in history, more than three times the same period last year, and management reiterated its target of at least 8 GW by 2030. FY26's median revenue guide increased 2% to US$12.4 billion to US$13.2 billion, and ARR increased its median value by 3% to US$18.5 billion to US$18.5 billion. The company raised the median annual capital expenditure guide by 12% to US$35.5-39 billion. The Q3 capital expenditure guide was US$11.5 billion to US$13.5 billion, higher than the market forecast of US$10 billion. The managed inference platform ARR grew from $1 million to over $100 million, and is expected to reach at least $250 million by the end of the year. According to the research report, the Q2 adjusted operating margin was about 8% higher than expected, but the Q3 profit margin guide of 5.8%-7.2% was lower than market expectations, and the Q4 profit margin needed to be greatly increased to achieve the full-year guideline. Damo expects CoreWeave FY27's operating profit margin to be 15.9%, FY28 to be 22.4%, free cash flow will remain negative until 2028, and debt is expected to rise to about 38 billion US dollars by the end of 2026. Damo maintains an equal-weight rating and a target price of $99. It believes that demand for GenAI data centers is strong, but high debt and customer concentration are key constraints that the valuation cannot break through.