Key Points

Meta Platforms forms a major part of CoreWeave's large revenue backlog.
CoreWeave may still deliver strong growth even without the Meta contract due to tight supply of AI data center capacity.
10 stocks we like better than CoreWeave

CoreWeave shares have tumbled sharply in recent months, falling 35 percent over the past quarter amid worries over heavy spending on AI infrastructure builds.

The stock took another hit this month after news that Meta Platforms, a key client, intends to offer its surplus AI data center capacity. While the reaction was understandable, investors appear to overlook the company's longer-term potential.

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Meta makes up a large share of CoreWeave backlog, but growth can continue without the giant

CoreWeave said in April it had enlarged its AI infrastructure deal with Meta Platforms to a total of $21 billion. This adds to an earlier $14.2 billion contract signed in September 2025. Both agreements extend through December 2032 for a combined value above $35 billion.

Reports that Meta may compete by selling excess AI compute capacity have weighed on CoreWeave. The $35 billion Meta contract explains the investor concern, as it represents a sizable slice of the $99.4 billion revenue backlog.

Even if Meta ends the relationship and uses its own capacity instead, CoreWeave's long-term outlook may hold up. A shortage of dedicated AI data centers persists. Bank of America notes data center power demand could outpace new supply by 100 gigawatts by 2030.

Any capacity freed by Meta could quickly find another buyer. Room also exists for more dedicated AI data center operators given the supply shortfall. These factors keep analysts positive on CoreWeave prospects.

Data by YCharts

The stock could become a multibagger

CoreWeave revenue is forecast to surge 147 percent in 2026 to $12.66 billion. The chart shows the company can maintain solid growth over time. This positions CoreWeave as an attractive AI stock trading at 5.8 times sales, near the Nasdaq Composite price-to-sales ratio of 5.1.

If CoreWeave trades at five times sales in three years with revenue at $40 billion, market cap could rise nearly fivefold to $200 billion.

Investors may view the recent decline as a chance to add shares, given strong demand for AI data center capacity.

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Bank of America is an advertising partner of Motley Fool Money. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.