Key Stats for CoreWeave Stock
- Last Week Price Change: 56%
- Current Share Price: $80
- 52-Week High: $69
- CRWV Stock Price Target: $50
What Happened?
CoreWeave (CRWV) stock rocketed 22.5% on Friday, capping off an extraordinary week that saw shares surge 56% over five trading days.
The AI infrastructure provider’s latest rally was triggered by two key developments: additional analyst upgrades and the revelation that major supplier Nvidia significantly increased its stake in the company following its March IPO.
An SEC filing disclosed that Nvidia raised its holdings by approximately 35%, from 17.9 million shares at IPO to 24.2 million shares by month-end, making its stake worth about $2 billion after this week’s gains.
The momentum began last Wednesday when CoreWeave reported its first earnings as a public company. It delivered 420% revenue growth and raised full-year guidance to $5 billion, well above analyst expectations of $4.6 billion.
The company also revealed a new $4 billion deal with OpenAI, which expands their existing five-year $11.9 billion agreement.
JPMorgan Chase boosted its price target to $66 from $43, while Needham & Co. lifted its target to $75 from $55. These brokerages join at least seven others that have set price targets between $50 and $80.
See CoreWeave’s full Q1 earnings transcript (It’s free) >>>
What the Market Is Telling Us
The sustained rally in CoreWeave stock reflects growing investor confidence in its position as a pure-play AI infrastructure provider, especially with Nvidia’s backing serving as a powerful endorsement.
The chipmaker’s decision to increase its stake shortly after the IPO signals optimism in CoreWeave’s business model and growth prospects.
However, some concerns remain that could temper enthusiasm for CRWV stock. For example, the midpoint capital expenditure outlook of $21.5 billion exceeds revenue projections by a sizeable margin, reflecting the capital-intensive nature of building data centers.
Additionally, analysts worry about customer concentration, with Microsoft accounting for 62% of revenue last year, though this dependency may decrease as OpenAI becomes a larger customer.
Despite these challenges, CoreWeave stock has become a standout performer in a market with few recent IPOs, offering investors a direct way to bet on the generative AI boom that began with ChatGPT’s launch.
D.A. Davidson analyst Gil Luria noted concerns about hyperscaler clients potentially reducing dependence once they build capacity. Still, CoreWeave’s partnerships with major players like OpenAI and an unnamed new hyperscaler customer suggest strong demand continues.
Trading at over 7.5x projected 2025 revenue with a market cap exceeding $38 billion, CoreWeave stock appears expensive for a company still posting net losses.
However, with Nvidia’s backing and the potential for sustained AI growth over the coming decade, many investors believe the current valuation could prove justified if the AI revolution maintains its momentum.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
