As part of our weekly fundamentals, we deep dive CoreWeave, a leading AI Hyperscaler.
Great article Kevin, might be missing something but why are you spreading Capex over 5 years in the forecast model?
In their S-1, CoreWeave states a 6-year depreciation schedule. For comparison, Meta uses 4 years, and AWS/Azure use 5 years. I used an average of 5 years in my analysis, as I believe 6 years is too aggressive.
You know where I was confused. I thought the analysis was cash flow based on each of the H100 clusters.
This should be net profit after depreciations etc.
Great article Kevin, might be missing something but why are you spreading Capex over 5 years in the forecast model?
In their S-1, CoreWeave states a 6-year depreciation schedule. For comparison, Meta uses 4 years, and AWS/Azure use 5 years. I used an average of 5 years in my analysis, as I believe 6 years is too aggressive.
You know where I was confused. I thought the analysis was cash flow based on each of the H100 clusters.
This should be net profit after depreciations etc.