CoreWeave Stock Boosted by Positive Analyst Ratings Amid AI Growth

NEW YORK, NY — CoreWeave Inc. stock surged on Wednesday after Cantor Fitzgerald initiated coverage with an Overweight rating and set a target price of $116. The AI infrastructure company’s stock climbed about 6% following the analyst firm’s optimistic outlook.

Analyst Thomas Blakey pointed to a “balanced view” of CoreWeave’s future, noting the massive potential in artificial intelligence markets. However, he also identified challenges related to the company’s rapid expansion.

CoreWeave operates as a hyperscale cloud platform focusing on AI applications, primarily generating revenue from large language model training services. Analysts expect that inference workloads will soon become a major growth driver, widening the company’s market opportunity as more businesses turn to AI-powered systems.

Nvidia Corporation plays a critical role in CoreWeave’s business model. The chip giant supplies the GPUs that power CoreWeave’s data centers and holds approximately 5.1% of CoreWeave after its recent public offering. This dual role creates a unique dynamic, allowing both companies to benefit from the increasing demand in AI infrastructure.

Cantor Fitzgerald referenced Nvidia’s vision for a trillion-dollar market in accelerated computing and noted additional opportunities in AI factories. Since going public, CoreWeave’s stock has shown volatility, notably declining 21% over the past month due to disappointing quarterly results.

The company reported a larger-than-expected loss in the second quarter, compounded by an IPO lockup expiration that allowed early investors to sell their shares. Despite recent downturns, CoreWeave’s stock remains significantly higher than its $40 IPO price, up 128% from that initial valuation.

Blakey’s $116 price target implies a 7x enterprise value-to-revenue multiple based on projected 2026 estimates. This is slightly lower than the 8x average seen in Cantor’s infrastructure software coverage group. Other analysts have also recently upgraded their views on CoreWeave, with nine analysts rating the stock a Buy and 13 recommending Hold ratings. Two analysts suggest Sell recommendations.

The average price target among analysts stands at $120.52, suggesting approximately 32% upside from current levels. Cantor Fitzgerald envisions CoreWeave benefiting from long-term trends in AI adoption, especially in large language model training and inference applications, but warns of potential risks such as customer concentration and financing challenges as the company scales.

The recent quarterly results showcased both the promise and challenges faced by companies in the AI infrastructure sector. While revenue growth was solid, profitability issues persist as CoreWeave invests heavily in expansion.