Backblaze (BLZE) is back in focus after signing a multi exabyte cloud storage agreement with AI infrastructure provider CoreWeave, a five year deal valued at about US$335 million.

The CoreWeave agreement has arrived at a time when momentum in Backblaze has already been strong, with a 30 day share price return of 56.06% and a 90 day share price return of 241.03% feeding into a 1 year total shareholder return of 123.74%.

If this AI storage contract has you thinking about what else is moving in the sector, it could be a good time to scan for other 49 AI infrastructure stocks

With Backblaze stock up triple digits over the past year and a US$335 million CoreWeave contract now on the table, the key question is whether today’s price still leaves upside potential or whether the market is already pricing in future growth.

Most Popular Narrative: 28.1% Overvalued

Backblaze last closed at $11.97, while the most followed narrative sets fair value at $9.34, creating a clear gap between market price and modeled worth.

The explosive increase in AI workloads is driving a step-function expansion in Backblaze's addressable market, AI customer data stored grew 40x year-over-year, and 3 of their top 10 customers are now AI companies, positioning B2 Cloud as a direct beneficiary of surging global data creation and accelerating secular demand likely resulting in accelerated multi-year revenue growth.

Want to know what earnings profile and revenue runway are baked into that valuation gap, and how a rich future profit multiple ties it all together? The narrative leans heavily on sustained AI data growth, margin progress, and a higher required return, but the real tension sits in how these assumptions interact over time.

Result: Fair Value of $9.34 (OVERVALUED)

However, the Backblaze story could look very different if AI storage demand from a handful of large customers softens, or if cloud pricing pressure squeezes already negative earnings.

Next Steps

If the mix of optimism and concern around Backblaze leaves you undecided, take a closer look now and weigh both sides using the 1 key reward and 3 important warning signs

Looking for more investment ideas beyond Backblaze?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.