Why This Billionaire Investor Ditched Super Micro for CoreWeave AI Stock

TLDR

• Coatue Management’s Philippe Laffont sold all Super Micro shares and bought CoreWeave in Q2 2025
• CoreWeave posted 134% revenue growth in Q3 with new OpenAI and Meta contracts
• Company increased credit facility to $2.5 billion in November 2025
• Super Micro margins fell for four straight quarters despite profitability promises
• Analysts project 90% annual revenue growth for CoreWeave through 2027

Philippe Laffont, billionaire manager of Coatue Management, made a major shift in his AI stock portfolio during the second quarter of 2025. He completely exited his Super Micro Computer position while purchasing CoreWeave shares, making it his fund’s largest holding.

CoreWeave, Inc. Class A Common Stock, CRWV

Coatue Management has outperformed the S&P 500 by 40 percentage points over three years. The fund’s decision to swap Super Micro for CoreWeave signals strong confidence in the AI cloud provider’s business model.

CoreWeave operates specialized data centers for artificial intelligence workloads. The company reported 134% revenue growth in the third quarter of 2025, driven by major customer wins.

The firm secured contracts with OpenAI and Meta Platforms during this period. Its existing customer base includes Nvidia and Microsoft, representing some of the largest players in AI technology.

Revenue backlog surged 271% as these deals were finalized. CoreWeave’s purpose-built data centers deliver up to 20% better GPU cluster performance compared to traditional cloud providers.

CoreWeave’s Competitive Edge

SemiAnalysis ranked CoreWeave as the top AI cloud platform on the market. The company maintains a strategic partnership with Nvidia that provides early access to new chip technology.

This advantage allowed CoreWeave to launch Nvidia H100 and H200 systems ahead of competitors. The company recently became the first provider to offer Nvidia’s GB200 and GB300 systems to customers.

CoreWeave expanded its revolving credit facility from $1.5 billion to $2.5 billion in November 2025. The maturity date was extended to November 2029 from the previous May 2028 deadline.

JPMorgan Chase Bank, Goldman Sachs, Morgan Stanley, and MUFG lead the facility. Additional banks participating include Citibank, Credit Agricole, Deutsche Bank, Sumitomo Mitsui Banking Corporation, and Wells Fargo.

Interest expenses consumed roughly 24% of revenue through the first nine months of 2025. CEO Michael Intrator explained the company only borrows when signed contracts require additional infrastructure capacity.

Why Super Micro Lost Favor

Super Micro Computer builds AI servers using a modular approach that allows quick integration of new chips. ABI Research named the company’s servers the most agile on the market.

Despite this recognition, Super Micro faces mounting competitive pressure. Gross margins have declined for four consecutive quarters, falling 6 percentage points since Q3 2024.

Management had projected margin improvement for 2025, making the continued decline more concerning. The company competes against larger rivals including Dell Technologies.

Super Micro functions as an intermediary, purchasing chips from Nvidia and AMD before incorporating them into server configurations. This business model offers limited opportunities for product differentiation.

Analysts expect Super Micro earnings to grow 29% annually over three years. The stock trades at 32 times earnings with a PEG ratio of 1.1, above its five-year average of 0.9.

Wall Street forecasts CoreWeave revenue will grow 90% per year through 2027. The median analyst price target of $157.50 per share implies 59% upside potential.

CoreWeave stock currently trades around $85 per share. Super Micro Computer shares trade near $40 with a median price target of $46.50.

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