CRWV is high-risk but attractive: demand is strong, with nearly $2.6 billion quarterly revenue up 112 percent and a $104 billion backlog, offset by heavy capex, large debt and a $626 million net loss. At about $63 it looks undervalued; I expect a rebound toward the moving average around $80 or mid-$80s.

The first stock is CoreWeave, whose ticker symbol is CRWV. I think the easiest way to understand CoreWeave is that it is essentially selling the infrastructure behind the AI boom.

CoreWeave operates a cloud platform specifically designed for artificial intelligence. Companies need massive amounts of GPU computing power to train AI models and to run those models through inference at an increasing rate.

CoreWeave builds infrastructure , gains access to vast amounts of GPU and data center capacity and power , and then sells that computing power to the world's largest AI technology companies.

What I like most is that CoreWeave does n't have to predict in advance which AI model will win. If the use of AI continues to grow, which I believe will happen, someone will have to provide the computing power.

Think of selling axes and shovels as being like the Gold Rush or the gold rush. Everyone is fighting to build the best AI model , but CoreWeave is selling them the infrastructure they need to build it. And currently its demand is very huge.

In the latest quarter, CoreWeave generated revenue of nearly $2.6 billion , which was 112 percent year-over-year growth. Wow, that's incredible!

However, there is one number here that really caught my eye. CoreWeave ultimately ended their quarter with a revenue backlog of nearly 104 billion. Okay, so when I look to the future, that backlog is actually future revenue.

And that was 246% more than the previous year. And what's even more surprising is that the 104 billion does n't include the more than 25 billion additional customer commitments that Coreweave added at the start of the third quarter.

So, demand is definitely not the biggest concern for this company. They generated about 1.5 billion in adjusted EBITDA this quarter , giving them a 59% adjusted EBITDA margin.

However, investors who are considering this stock now need to be very careful here , as the stock has fallen a lot. The market is currently in a state of complete bloodbath. However, CoreWeav is spending an incredible amount of money building this infrastructure.

So, capital expenditure in the second quarter alone was about $9.4 billion and the company is carrying a debt burden of hundreds of billions of dollars. They also reported a GAAP net loss of about $626 million for the quarter.

So, it's not really a perfect low-risk AI company. In fact, it's a high- risk name, which is why I'm trading options on CoreWeave. I think the options look very profitable. I mean, if you want to make a lot of money, right?

If you really want to grow your portfolio, you need something with high implied volatility , and CoreWeave has a lot of volatility. So, I'm actually interested in buying it right now.

Now, the bull case is that there is a lot of contract demand from the coronavirus, incredible revenue growth, and the potential for economic conditions to improve once infrastructure is fully operational.

The bear case is that they are spending millions, I mean billions of dollars and it is a huge amount of money and they are taking on a lot of debt to achieve this growth. I think it's fine , but it's a risk to the story and that's exactly why this price is so important for Coreweave.

So even a great growth story can be a terrible investment if you pay too much for it.

Okay, friends, let's see. Coreweave is currently trading at around $63 per share. This is very, very unstable. It's down 8% today and what I want to point out is that this stock originally hit the $60 level in late July and that's where I'm looking at now because the stock is now below the moving average.

It is well below the moving average. It is located below the Bollinger Bands. I think at this point it's in the same state as it was in late July, and the stock saw a major upward move again in late July.

Right now, it seems to me that the entire stock market is in a downward spiral. There is volatility in the market, but honestly, I don't think it will last long. So I think Coreweave will return to near the moving average , meaning $80 per share or mid-$80s , or even above $80.

So I see the current time as a big opportunity where the stock is very undervalued.