# I'm Buying THIS AI Stock To Get Rich (Without Getting Lucky)

Source: https://www.youtube.com/watch?v=dT2sUPF52lg
Recap page: https://rapidrecap.app/video/dT2sUPF52lg
Generated: 2025-11-13T20:33:14.565+00:00

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## Quick Overview

The video concludes that CoreWeave (CRW) stock is currently undervalued despite recent volatility, arguing that the company's strong revenue backlog, high demand for its AI infrastructure, and its strategic position in the AI ecosystem outweigh short-term risks like high CapEx and potential accounting criticisms raised by investors like Michael Burry.

**Key Points:**
- CoreWeave's Q3'25 revenue backlog is projected to hit $55.6 billion, a 271% year-over-year increase from $15.0 billion in Q3'24, indicating strong future revenue visibility.
- The company's capital expenditures decreased to $1.9 billion in Q3'25, down from a peak of $2.9 billion in Q2'25, suggesting CapEx is normalizing after massive investment cycles.
- Michael Burry's criticism centers on hyperscalers allegedly understating depreciation expenses by extending the useful life of AI chips beyond a realistic 2-3 year cycle, inflating reported earnings.
- CoreWeave's business model is positioned as the essential AI infrastructure provider, servicing AI labs (like OpenAI, with a $6.5B expansion) and enterprises that cannot wait years for AWS/Azure capacity.
- The stock price recently dropped by nearly 40% in the past month to $85.43, but the presenter's DCF model suggests a fair value of $424.10, indicating it is 75.1% undervalued.
- The short-term risk of construction delays in a single datacenter (out of 41) caused recent guidance revisions, but the presenter views this as an isolated incident, not a systemic problem.

![Screenshot at 13:09: The presenter concludes that the best investment is in oneself, pointing to the end screen which encourages viewers to check out another video, implying that understanding the fundamental value proposition of CoreWeave \(unlike short-term market noise\) is the key to long-term gains.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-13-09.png)

**Context:** This video analyzes the investment potential of CoreWeave (CRW), a rapidly growing AI infrastructure provider, following recent stock volatility, contract announcements (including a $6.5B expansion with OpenAI), and bearish commentary from prominent investor Michael Burry regarding accounting practices in the AI sector. The presenter aims to assess whether the stock's recent crash represents a buying opportunity or a fundamental risk, detailing CoreWeave's business model, financial performance, and competitive advantages against hyperscalers.

## Detailed Analysis

The video argues that despite recent negative sentiment, CoreWeave (CRW) remains a strong investment due to its massive revenue backlog growth and essential role in the AI supply chain. The company's Q3'25 revenue backlog is projected at $55.6 billion, a 271% year-over-year increase from $15.0 billion in Q3'24, with 40% of that backlog contracted for more than 24 months. This contrasts sharply with Michael Burry’s criticism that major cloud providers are inflating earnings by understating depreciation on expensive, rapidly evolving AI chips with short useful lives (2-3 years). CoreWeave, by offering dedicated, high-bandwidth, low-latency infrastructure using the latest NVIDIA Blackwell GPUs and TensorRT-LLM software, captures customers like OpenAI and Microsoft who need compute capacity immediately, avoiding the capacity constraints faced by hyperscalers. The presenter’s discounted cash flow model suggests a fair value of $424.10 per share, making the current trading price of $85.43 (a 40% drop in the past month) significantly undervalued. The recent guidance reduction was attributed to a construction delay in a single datacenter, which the presenter dismisses as an isolated, short-term issue.

### CoreWeave Business Model

- Provides instant access to high-performance computing infrastructure using NVIDIA hardware (Blackwell, H100, Grace CPU) for AI training and inference
- Competes against hyperscalers by offering dedicated capacity to labs and enterprises
- Operates 41 geographically distributed data centers across North America and Europe.

### Financial Performance

- Q3'25 revenue backlog projected at $55.6B (271% YoY growth) vs. $15.0B in Q3'24
- CapEx decreased to $1.9B in Q3'25 after a Q2'25 peak of $2.9B
- Stock price recently crashed to $85.43 (down 39.68% past month).

### Risks & Criticisms

- Michael Burry alleges hyperscalers are understating depreciation by extending chip life, artificially boosting earnings
- CoreWeave's recent guidance trim (-9% Q4 expectations) stemmed from a construction delay in one datacenter, viewed as isolated.

### Valuation

- DCF model estimates a fair value of $424.10 per share, implying the stock is 75.1% undervalued at the current price of $85.43.

### Sponsor Segment (DeleteMe)

- Offers a hands-free subscription service to remove personal data from hundreds of online data brokers, with the presenter offering a 20% discount code 'SYMBOL20'.

![Screenshot at 00:05: Overview of a server room/data center hallway, setting the stage for infrastructure discussion.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-00-05.png)
![Screenshot at 00:26: CoreWeave logo and ticker symbol \(CRWV\) displayed over the presenter, identifying the investment focus.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-00-26.png)
![Screenshot at 01:07: Slide detailing CoreWeave's geographically distributed footprint: 41 data centers, ~590MW active power, and ~2.9GW contracted power.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-01-07.png)
![Screenshot at 01:25: Close-up animation of NVIDIA Blackwell GPUs being assembled, highlighting the high-end hardware powering the service.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-01-25.png)
![Screenshot at 02:34: News headline showing CoreWeave expanding its OpenAI agreement by up to $6.5B, signaling major client confidence.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-02-34.png)
![Screenshot at 04:50: Visual representation of dense cabling within a rack, emphasizing the complexity and scale of the infrastructure.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-04-50.png)
![Screenshot at 07:26: Bar chart showing CoreWeave's Revenue Backlog growing from $15.0B \(Q3'24\) to $55.6B \(Q3'25\), a 271% YoY increase.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-07-26.png)
![Screenshot at 08:43: Chart showing Capital Expenditures dropping to $1.9B in Q3'25 after a Q2'25 peak of $2.9B, indicating capital spending moderation.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-08-43.png)
![Screenshot at 10:01: Text overlay detailing Michael Burry's allegation that hyperscalers are understating depreciation expenses by extending chip useful life.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-10-01.png)
![Screenshot at 14:23: Stock chart showing CRWV stock price dropping sharply to $85.43, reflecting recent market reaction to earnings guidance changes.](https://ss.rapidrecap.app/screens/dT2sUPF52lg/00-14-23.png)