Equity Research · Current Holding
CoreWeave
CRWV · NASDAQ · AI Cloud Infrastructure
The scarcest thing in computing right now is contracted GPU capacity, and CoreWeave sells exactly that.
Quan Pham · M’Squared Capital Research · August 2026
What the market is missing
The debate about CoreWeave is all about customer concentration and capital intensity — real risks, but they are the second question. The first is that contracted, purpose-built GPU capacity against insatiable inference demand is the defining supply position of this cycle, and the market keeps litigating the balance sheet instead of the scarcity.
Why I own it
I added CoreWeave as a direct claim on compute scarcity. The infrastructure is AI-native — networking, orchestration, utilization engineered for the workload rather than retrofitted from general-purpose cloud — and the long-dated contracts give revenue visibility unusual for something growing this quickly. I am not betting on a turnaround; I am renting the bottleneck.
What has to happen
Capacity and backlog have to keep expanding, marquee customers have to broaden rather than narrow, utilization and margins have to hold as it scales, and financing has to come on improving terms rather than punitive ones.
What would prove me wrong
If GPUs stop being scarce — oversupply, a step-down in training demand, pricing pressure — the whole premise softens. Customer concentration is the sharpest version of that risk: if a single large relationship changes, the revenue base moves a lot. And a capital-intensive business is only as good as its access to capital.
Valuation & exit
I hold CoreWeave without a published target. The thesis is durable demand for contracted compute outrunning supply; the risk is carried in the balance sheet and the customer list. I size it accordingly and watch the backlog, not the tape.
Position
Long Equity
Initiated
New · Aug 2026
Sector
AI Cloud Infrastructure
Status
Current holding
Last updated
August 2026
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