TLDR
- Wells Fargo upgraded CoreWeave (CRWV) to Buy from Hold, raising price target to $170 from $105
- Melius Research also upgraded to Buy from Hold, increasing target to $165 from $128
- Nvidia pledged up to $100 billion investment in OpenAI’s AI infrastructure, benefiting CoreWeave
- CoreWeave has about half its backlog tied to new OpenAI contracts
- Stock has gained 42% in past month and 242% year-to-date
CoreWeave stock climbed Tuesday following upgrades from two major Wall Street firms. The AI infrastructure company received Buy ratings from both Wells Fargo and Melius Research.
Wells Fargo analyst Michael Turrin upgraded CRWV to Buy from Hold. He raised the price target to $170 from $105, citing strong positioning in the AI market.
Turrin highlighted CoreWeave’s advantage over software companies still waiting for AI monetization. The company benefits from strong demand driven by elevated build cycles and persistent shortages through 2026.
The analyst increased his revenue estimates for fiscal 2026 and 2027 by 5% and 9% respectively. He sees potential for CoreWeave to capture market share as demand continues.
Major Tech Partnerships Fuel Growth
Microsoft and Alphabet recently expanded their arrangements with CoreWeave. These partnerships position the company to handle increasing cloud infrastructure needs.
Nvidia’s recent deal adds another layer of support. The chip giant agreed to purchase all unused CoreWeave capacity through 2032.
Turrin described this arrangement as giving CoreWeave a “blank check” to build new capacity. The deal covers more than six years of expansion plans.
Melius analyst Ben Reitzes also upgraded the stock to Buy from Hold. He raised his price target to $165 from $128.
OpenAI Connection Strengthens Position
Reitzes based his new target on 23 times 2027 earnings before interest and taxes. He pointed to accelerating cloud demand as a key driver.
CoreWeave typically receives Nvidia’s next-generation AI systems first. This early access helps the company capture cloud demand over the long term.
The analyst believes CoreWeave will benefit as AI inferencing usage explodes. The company’s specialized focus on GPU-accelerated workloads supports this thesis.
Nvidia announced plans to invest up to $100 billion in OpenAI’s infrastructure. This investment is expected to benefit the broader AI industry.
CoreWeave has roughly half its backlog tied to new OpenAI contracts. The Nvidia-OpenAI partnership could drive additional demand for CoreWeave’s services.
Wall Street maintains a Moderate Buy rating on the stock. The consensus includes 15 Buy ratings, 11 Holds, and two Sell recommendations.
The average price target sits at $145.31, suggesting 8.2% upside from current levels. CRWV has gained 42% over the past month compared to 3.6% for the S&P 500.
The stock trades above both its 50-day moving average of $111.99 and 100-day average of $116.25. Key support appears around the 200-day moving average at $103.23, while resistance sits near the recent high of $136.00.
