CRWV is slightly undervalued with huge upside due to strong demand, but the speaker avoids owning it due to its risk profile.

I'm going to detail the highlights of this announcement, what it could mean for Nvidia, share with you my fair value estimate for Nvidia stock, and share with you my fair value estimate for Cororeweave, and update the buy, hold, or sell rating for each of these two companies.

So, Cororeweave's management team had an interview with Yahoo Finance and they were formed they informed investors that we are struggling to meet demand every day. Every GPU we have could be sold to multiple different clients. It's a unique moment and it continues to be.

Not only are they sold out, but what the management team is insinuating here is they could be sold out multiple times over. There are several customers that are waiting in line to purchase this product.

Now, this is interesting because some of these companies, the Neoclouds like Core Weeave and others have chosen to not sign longerterm agreements because they believe that prices today are lower than what they will be 3 months from now and 6 months from now.

So, they withhold some of their capacity from the marketplace so they can benefit from this dynamic where supply remains short, everything is sold out. So that next customer that comes into the market that wants to get computing power right away, they're able to find it and pay that premium price to access that.

It'll go to the highest bidder. And when there are shortages, that creates a bidding war that's good for companies like Core Weeave.

Coreweave being a much smaller company reported second quarter sales surging by 112% year-over-year. And of course, again, Core Weave is also supply constrained. If they had more supply, they would be able to generate more sales.

Their backlog has now soared to $14 billion. And because of these booming results, management raised their fullear 2026 revenue guidance to a range of 12.4 to 13.2 billion.

So today, I updated my estimate for fair value for Core Weave. I now calculate the business to be worth $11 per share compared to the current market price of $89 per share. It's slightly undervalued, I would say.

And I apply a wider margin of safety here of Core Weave. Typically, I apply a 5 to 10% margin of safety in the evaluation here. But for Core Weeave, I expand that because it's a riskier business.

I expand the margin of safety to 10 to 15%. So, it's within that range of 10 to 15%. So, I would call it slightly undervalued.

Coreweave I don't own and I'm not interested in owning. These are not the types of companies I interested in owning. Although I wouldn't blame you if you were interested in owning Core Weeave stock as it has huge upside.

It's sold out. It's in a booming business and the stock price looks relatively attractive.