05-07-2025
CoreWeave Stock (CRWV) Continues to Ride the AI Wave. Do Analysts See More Upside?
CoreWeave (CRWV) stock rose about 9% on Thursday following the announcement that it has become the first cloud provider to deploy Nvidia's (NVDA) next-generation artificial intelligence (AI) chips – the Blackwell Ultra GPUs (graphics processing units). CRWV stock has risen about 313% to $165.20 from its initial public offering (IPO) price of $40. While the stock continues to rise on investor optimism, many Wall Street analysts are cautious about CoreWeave stock due to several reasons, including valuation concerns, and see a possible downside from current levels.
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CoreWeave bulls highlight the company's partnership with Nvidia, robust orders, and growing demand for computing and AI infrastructure. Notably, the company reported a 420% jump in its Q1 2025 revenue to $981.6 million and ended the quarter with a solid backlog of $25.9 billion. However, many analysts are concerned about CoreWeave stock's steep valuation following the strong rise since its IPO, margin pressures due to significant investments, and high debt levels.
Recently, H.C. Wainwright analyst Kevin Dede initiated coverage of CoreWeave stock with a Hold rating. The analyst noted CRWV's 'proven bleeding-edge technology implementation and ability to bring it to supercomputing scale.' The 4-star analyst also highlighted the company's growing customer list, which includes hyperscalers themselves, as well as its speed to market, which it has enhanced through new deals with emerging infrastructure partners and suppliers.
Dede also noted a large and expanding addressable market, which, according to CoreWeave, is expected to increase to $400 billion by 2028. The analyst added that AI itself could have a $20 trillion global impact by 2030. Despite these positives, Dede currently prefers to be on the sidelines, given the 'explosive' rise in CRWV stock.
Meanwhile, Bank of America analyst Bradley Sills downgraded CoreWeave stock to Hold from Buy due to its lofty valuation. The 4-star analyst also projects $21 billion of negative free cash flow through 2027 owing to elevated capital expenditure ($46.1 billion through 2027). However, Sills boosted CoreWeave stock's price forecast to $185 from $76, noting several positives, including the OpenAI deal and strong revenue momentum.
Is CoreWeave Stock a Good Buy?
Overall, Wall Street is cautiously optimistic on CoreWeave stock, with a Moderate Buy consensus rating based on 11 Holds, six Buys, and one Sell recommendation. However, owing to the impressive rally since the IPO, the average CRWV stock price target of $78.53 indicates 52.5% downside risk from current levels.
