The Best IPO to Buy in 2026 Isn't What You Think. I'm Betting on CoreWeave.
Key Points
CoreWeave's $104 billion revenue backlog and $25 billion in new commitments show deep demand for its AI computing capacity.
Nvidia's has made a $2 billion investment into CoreWeave and given it early access to its Vera Rubin platform, providing it with a structural edge over its neocloud rivals.
An 8-gigawatt global expansion is being funded partly with debt, a bet that could pay off if computing demand keeps climbing.
Everyone is looking for the next big initial public offering (IPO) in 2026, but I think CoreWeave (NASDAQ: CRWV), which debuted in 2025, already offers a compelling opportunity for investors. As one of the key players building the infrastructure behind the artificial intelligence (AI) boom, it's arguably a better bet than many of the new names about to hit the market in the final quarter of this year.
Image source: Getty Images.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
CoreWeave is selling the infrastructure behind the AI boom
Building the infrastructure to support AI requires server clusters housing vast numbers of graphics processing units (GPUs), access to enormous amounts of electricity, and powerful cooling systems, among other things. CoreWeave brings these resources together and rents out the resulting computing capacity.
It's pretty clear that many large companies are finding CoreWeave's platform a compelling option -- even some that are building plenty of data centers themselves. The company reported a $104 billion revenue backlog and more than $25 billion in additional net customer commitments secured in the third quarter.
That means that it has a lot of visibility into future demand. And much of its expansion is supported by customers who have already committed to renting capacity as it becomes available.
What's even more interesting is that demand for that infrastructure is so strong that its clients are willing to pay a premium. CoreWeave reported that some of its newer, shorter-term contracts were generating $40 million per megawatt in annualized revenue.
To me, that's an important development because it shows that customers aren't just signing more contracts. They're also willing to pay attractive prices for available capacity. So it's no surprise that even Nvidia is expanding its relationship with CoreWeave.
A deepening Nvidia partnership backs the bull case
It's well known that Nvidia's GPUs are powering much of the AI boom, but what I think is really interesting is how CoreWeave has built a business around deploying Nvidia's hardware at scale. However, there's more to this relationship than simply buying Nvidia's latest chips.
Nvidia announced an added $2 billion investment in CoreWeave and expanded its partnership to help develop more than 5 gigawatts of AI infrastructure by 2030. Nvidia will help secure land, electricity, and data center facilities to enable that expansion.
And the relationship goes even further. CoreWeave gets early access to Nvidia's latest technology, including its next-generation Vera Rubin architecture, which features its Vera central processing units (CPUs) as well as advanced networking and storage systems. This gives CoreWeave an opportunity to bring cutting-edge AI infrastructure to market quickly.
That matters now as tech players are competing to develop more advanced AI models.
CoreWeave has ambitious plans to expand its AI infrastructure
CoreWeave plans to expand its data center footprint to more than 8 gigawatts of active power by 2030. To put that ambition into perspective, it had around 1.5 gigawatts of active power at the end of the second quarter.
Its expansion plans aren't limited to the U.S., either. Management has announced its first move into the Asia Pacific region, with three planned data centers in Indonesia expected to come online in 2028. Together, they'll add 360 megawatts of computing capacity, helping reach customers across Southeast Asia.
This expansion won't come cheap, and that's at least partly why CoreWeave secured a $2.6 billion loan facility. Taking on more debt will help it scale up revenue faster than if it waited until it was generating the cash flow to cover those expenses. The question is whether it will be able to execute well on those plans.
Is CoreWeave a buy right now?
The stock is a direct bet on the infrastructure that underpins the AI boom. Investors don't need to predict which AI models will win. Through CoreWeave, we can simply bet that demand for computing capacity will continue to grow.
With strong customer demand, a deepening relationship with Nvidia, and ambitious expansion plans, the upside could be substantial. That's why I'd rather bet on CoreWeave than chase the latest IPOs in 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.