I Think You Missed CoreWeave's Zero-Cost-Basis Engine
CoreWeave's bear case rests on GPUs aging out fast. But the company just signed a multi-year contract for Nvidia's 2020-era A100 chips, extending their revenue life through 2029. The debt markets are starting to price in what that means: Older Nvidia silicon may hold value far longer than Wall Street's depreciation models assume.
Overview
Wall Street treats GPUs like disposable electronics. CoreWeave (NASDAQ: CRWV) is running them like long-duration infrastructure.
CoreWeave is borrowing tens of billions of dollars to buy Nvidia (NASDAQ: NVDA) chips and rent them to AI software builders. The bear case against the stock is simple: Graphics chips age quickly. If Nvidia launches faster processors every 12 months, three-year-old chips should become useless, trapping CoreWeave in a cycle of taking on new debt just to replace dying hardware.
That theory has a flaw. The real-world contract data shows older chips are not dying.
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Source
Originally published at www.fool.com.