CoreWeave's AI-Driven Growth: Analyst Optimism and Market Dynamics

CoreWeave will rally more than 25% from here thanks to AI, says Cantor Fitzgerald

Cantor Fitzgerald sees CoreWeave as a big artificial intelligence beneficiary in the coming years. The investment firm initiated coverage of the cloud computing company at an overweight rating and $116 per share price target, which implies upside of 27%. Analyst Thomas Blakely noted CoreWeave's compelling profile. The company's target market opportunity is around $399 billion, and CoreWeave has expanded at an compounded annual growth rate of 38% since 2023. He also emphasized the company's focus on building out its AI model training and infrastructure as a major catalyst for the stock. "Our rating is driven by our view of a healthy balance between a significant AI market opportunity and dynamic execution risks," he wrote. "We believe CoreWeave should benefit from secular growth trends in AI, specifically large language model (LLM) training and inference-based usage, as an enabling software-driven AI-focused hyperscaler, comfort in near-term demand/supply imbalance, and competitive differentiation." Meanwhile, CoreWeave's July 7 announcement that it would acquire Core Scientific in a $9 billion deal would expand the company's gross power and national data center footprint, further boosting the stock in the near term. This is because access to power has been "crucial in deploying AI and CoreWeave's services," Blakely said. "We view the closing of the proposed CORZ transaction and the potential conversion of bitcoin-related valuable power to HPC as another near-term catalyst for CRWV shares," he added. The analyst also emphasized CoreWeave's access to capital markets to finance some of its purchases, which is key to the company's growth. "CoreWeave has a track record of lowering its debt costs in recent years and this past quarter, indicating to us that the company has healthy access to capital markets, particularly the debt market, which is its main funding resource," he wrote. "We highlight for investors that data center peers have had recent access to debt markets as well as pursuing relatively large equity raises (e.g., Vantage, Crusoe), indicating further health in terms of funding markets related to AI/GPU-related infrastructure." CRWV YTD mountain CRWV YTD chart Since going public in March, CoreWeave stock has surged 128%.

CoreWeave Inks $4 Billion AI Deal, Proving CRWV's 'Not Issuing Debt To Fund Speculative CapEx,' Says Analyst - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), CoreWeave (NASDAQ:CRWV)

CoreWeave Inc. CRWV, an AI cloud computing firm, has secured $4 billion through a joint venture to support its planned expansion in Lancaster, Pennsylvania. Check out CRWV's stock price over here. CoreWeave Raises $4 Billion For Pennsylvania Data Center The deal, involving funds managed by Blue Owl Capital, affiliates of Chirisa Technology Parks (CTP), and Machine Investment Group (MIG), directly addresses and refutes common criticisms regarding the company's financial strategy, according to a recent analysis by Rittenhouse Research. The $4 billion funding is dedicated to the Lancaster campus, a planned innovation hub set to host compute infrastructure for the latest Artificial Intelligence applications. Blue Owl stated its intention to fund up to $20 billion of developments for CTP, extending an existing partnership that already supports nearly half a gigawatt of new developments in Virginia and Pennsylvania. CRWV Debt Is Not Funding Speculative CapEx Critically, this substantial investment arrives amid ongoing discussions about the sustainability of AI infrastructure growth. Rittenhouse Research, in an analysis published on X, highlighted that "CoreWeave's debt load is oft-cited by AI skeptics comparing the current AI infrastructure build-out to the telecom bubble of the early 2000s." However, the research firmly counters this, stating, "In reality, the majority of CRWV's debt-load is specifically tied to underlying customer contracts. CRWV is not issuing debt to fund speculative CapEx that may or may not generate future revenue." This contract-backed approach is a cornerstone of CoreWeave's financial health. The research further noted that 98% of CRWV's revenue is tied to specific long-term (4+ years) customer contracts, demonstrating a robust and de-risked business model. See Also: After 50% Crash, CoreWeave Faces Its Make-or-Break Test: Nvidia Earnings CRWV Cost Of Debt Falls In Q2 Beyond securing major funding, CoreWeave has also been highly successful in driving down its cost of debt capital. Rittenhouse Research pointed out that the second quarter's interest expense was essentially flat as compared to the first quarter, despite total debt increasing from $8.8 billion to $11.2 billion. The implied average interest rate on its debt declined from 13% to 11% quarter-over-quarter, reflecting strategic paydowns on higher-cost facilities and new draws at more favorable rates. "Lenders continue to get more comfortable with its business model," the research noted, indicating growing market confidence in CoreWeave's approach. The $4 Billion JV Reiterates CRWV's Financial Prudence The Lancaster campus is envisioned as a sustainable facility, utilizing adaptive reuse of existing buildings and incorporating advanced, energy-efficient cooling systems. The partnership also plans to fund approximately $200 million for local power grid improvements in collaboration with PPL Electric Utilities, ensuring a positive community impact. This $4 billion joint venture, therefore, not only bolsters CoreWeave's capacity but also reinforces its financial prudence in the rapidly evolving AI landscape. Price Action Coreweave's shares closed 1.07% lower on Tuesday and rose 0.50% after hours. It was up 128.48% since its listing in March. Benzinga's Edge Stock Rankings indicate that CRWV maintains a weaker price trend in the short, medium, and long terms. Also, the stock scores poorly on value rankings. Additional performance details are available here. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Tuesday. The SPY was up 0.42% at $645.16, while the QQQ also advanced 0.40% to $572.61, according to Benzinga Pro data. On Wednesday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading slightly higher. Read Next: CoreWeave Stock: Insiders Are Selling, But Everyone Else Is Buying Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: T. Schneider / Shutterstock CRWVCoreWeave Inc$91.85-0.57%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowthN/AQualityN/AValue17.79Price TrendShortMediumLongOverviewQQQInvesco QQQ Trust, Series 1$573.330.53%SPYSPDR S&P 500$645.710.50%Market News and Data brought to you by Benzinga APIs

CoreWeave Faces Make-or-Break Test: Nvidia Earnings - CoreWeave (NASDAQ:CRWV)

CoreWeave, Inc. CRWV stock is at a crossroads, with the NVIDIA Corp. NVDA earnings report preparing to test investor confidence and the company's long-term trajectory. CRWV stock is down 20% this month. Check out the chart here. CoreWeave's business model is deeply intertwined with Nvidia's ecosystem as it provides high-performance GPU cloud services, largely powered by Nvidia's H100 and A100 chips. This dependence means Nvidia's financial performance, guidance and commentary on AI demand has the potential to affect market sentiment toward CoreWeave. Read Next: Retail Investors' Top Stocks With Q2 Earnings This Week: NVIDIA, Webull, IREN And More NVDA Q2 If Nvidia signals continued strength in orders for its GPUs, particularly from cloud providers and enterprise customers, it could reinforce the thesis that CoreWeave remains well-positioned to capitalize on the surging demand for AI workloads. However, any indication of slowing momentum or supply constraints could weigh heavily on CoreWeave. Investors may have already begun recalibrating expectations and moving past the initial euphoria surrounding AI infrastructure toward a more sober analysis of CoreWeave's profitability and scale. CoreWeave stock had been riding a wave of optimism around AI demand, but has seen a sharp 50% correction from its peak of $187 in late June. A flurry of insider sales, as well as tightening funding conditions and questions about the sustainability of its rapid growth, have weighed on the stock. CoreWeave's fate in the near term may hang on Nvidia's earnings as both a signal of the broader AI market's durability and a measure of how much growth runway remains for specialized cloud players. A strong Nvidia report could offer a crucial lifeline, potentially stabilizing sentiment after CoreWeave's valuation collapse. On the other hand, disappointing sales or a weaker outlook could accelerate pressures, making Nvidia's earnings release a real make-or-break test for CoreWeave stock. CRWV Stock Price: According to data from Benzinga Pro, CoreWeave shares were down 2.53% at $91.61 at the time of publication Monday. Read Next: Space Stock Tracker: Rocket Lab Launches, Starlink Outages Photo: Shutterstock CRWVCoreWeave Inc$92.22-1.88%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/AGrowthN/AQualityN/AValue18.29Price TrendShortMediumLongOverviewNVDANVIDIA Corp$181.261.84%Market News and Data brought to you by Benzinga APIs

CoreWeave Growth Fueled By OpenAI Contracts, Strategic Acquisition - CoreWeave (NASDAQ:CRWV)

CoreWeave Inc. CRWV is accelerating its AI infrastructure push, with backlog surging on OpenAI contracts and a $9 billion Core Scientific, Inc. CORZ acquisition in play. Cantor Fitzgerald analyst Thomas Blakey initiated coverage on CoreWeave with a price forecast of $116. CRWV is delivering impressive returns. See what is driving the move here. Blakey explained that CoreWeave is well-positioned to benefit from the rapid expansion of the AI market, particularly in large language model training and inference. The analyst highlighted its differentiation as a software-driven, AI-focused hyperscaler. Also Read: Jeep Parent Stellantis Unleashes $41 Million Georgia Investment For Faster Parts Delivery The analyst added that while the company's growth outlook is strong and supported by near-term demand and supply imbalances, it also faces longer-term execution risks, including customer concentration, financing challenges and power-related constraints. The analyst indicated that CoreWeave, a leading GPU-as-a-Service provider, is positioned to capture a large share of the rapidly expanding AI-optimized IaaS market, which is projected to grow sharply through the decade. He highlighted the company's expected revenue growth far outpaces broader IaaS trends, supported by its strong customer relationships, proprietary tools and integrated platform that helps optimize costly GPU usage. Blakey added that CoreWeave's strategic partnerships, competitive moat, and growing importance in AI training position it well, while the potential to expand into accelerated inference computing could provide an additional long-term growth driver. Blakey pointed out that CoreWeave's remaining performance obligation rose from $15.1 billion at the end of 2024 to $30.1 billion by the second quarter of 2025, with roughly half of that backlog tied to new contracts with OpenAI. Apart, the analyst noted that on July 7, 2025, CoreWeave announced a $9 billion all-stock deal to acquire Core Scientific, offering 0.1235 of its shares for each CoreScientific share based on a ~$160 VWAP. Blakey added that completing the transaction and converting Core Scientific's bitcoin-linked power assets into high-performance computing capacity could serve as a meaningful near-term catalyst for CoreWeave shares. CRWV Price Action: CoreWeave shares are trading higher by 6.07% to $96.96 at publication on Wednesday. Read Next: MongoDB Stock Is Soaring Wednesday: Here's Why Photo: JackPress via Shutterstock CRWVCoreWeave Inc$97.276.43%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/AGrowthN/AQualityN/AValue18.39Price TrendShortMediumLongOverviewCORZCore Scientific Inc$14.311.96%Market News and Data brought to you by Benzinga APIs

CoreWeave Stock Is Trending Thursday: What's Going On? - CoreWeave (NASDAQ:CRWV)

CoreWeave Inc CRWV shares are trading higher on Thursday. Here's what you need to know. What To Know: CoreWeave shares appear to be getting a boost from Nvidia Corp NVDA earnings on Thursday. The stock traded higher in after-hours Wednesday following the report before seeing momentum build on Thursday. CoreWeave provides access to Nvidia GPUs for large technology and AI-focused companies. Nvidia beat analyst estimates on the top and bottom lines in the second quarter and issued strong third-quarter revenue guidance of $52.92 billion to $55.08 billion versus Benzinga Pro estimates of $52.96 billion. Nvidia founder and CEO Jensen Huang said demand for Blackwell is "extraordinary" as the platform sits at the center of the AI race. On the earnings call following the print, the Nvidia CEO suggested that Nvidia chips are irreplaceable and dismissed concerns that competitors could erode the company's lead in AI. CoreWeave's business model is built around renting out Nvidia GPUs for AI and high-performance computing. The continued demand that Nvidia said it's seeing for AI infrastructure appears to be benefitting CoreWeave shares on Thursday. Trading volume in CoreWeave has already crossed 23 million shares on Thursday, above the 100-day average volume, indicating strong interest and conviction in the current price movement. This uptick in volume supports the recent price increase, suggesting buyers are stepping in. Support levels are clearly defined at $99.90, which aligns with the recent low, while resistance is set at $105.50, the recent high. A break above this resistance could signal further upside potential. The RSI is calculated at 70.12, indicating that the stock is nearing overbought territory, which could lead to a pullback if momentum shifts. The MACD shows a bullish crossover, but the lines are beginning to converge, suggesting that momentum may be slowing. Analyst sentiment remains positive, with Cantor Fitzgerald maintaining an Overweight rating with a $116 price target on Wednesday, suggesting shares could rally on the back of AI demand. HC Wainwright & Co. maintained a Buy rating with a $180 price target on Aug. 21 and MoffettNathanson maintained a Neutral rating with a $65 price target on Aug. 19. CoreWeave reported mixed results for the second quarter earlier this month with revenue of $1.21 billion beating estimates of $1.08 billion, but a quarterly loss of 27 cents per share, missing estimates for a loss of 17 cents per share. CRWV Price Action: CoreWeave shares were up 6.44% at $103.17 at the time of publication Thursday, according to Benzinga Pro. Read Next: Nvidia, CrowdStrike, Snowflake, CoreWeave, Polestar Automotive: Why These 5 Stocks Are On Investors' Radars Today Photo: JackPress/Shutterstock.com CRWVCoreWeave Inc$103.006.26%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/AGrowthN/AQualityN/AValue19.21Price TrendShortMediumLongOverviewNVDANVIDIA Corp$180.03-0.87% This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

CoreWeave Stock Surges As Nvidia's AI Revenue Fires Up - CoreWeave (NASDAQ:CRWV)

CoreWeave, Inc. CRWV stock climbed sharply on Thursday as NVIDIA Corp.'s NVDA AI-driven earnings took center stage. CoreWeave's landmark $4 billion funding for its new Pennsylvania data center and a series of optimistic analyst upgrades added fuel to the stock's fire. CRWV stock is climbing. See the real-time chart here. NVDA Q2 Nvidia reported revenue of $46.74 billion, up 56% year-over-year, with Blackwell data center revenue growing 17% from the prior quarter. Read Next: Could Trump Target A Stake In UnitedHealth Next? Maybe ... Here's Why Demand for AI accelerators and cloud data center GPUs, which benefit partners like CoreWeave, continued to fuel Nvidia's record-breaking financial performance. CoreWeave's growth is directly linked to its integration of Nvidia GPU infrastructure for AI compute, making both companies primary beneficiaries of booming enterprise AI adoption. Nvidia also owns a stake in CoreWeave, highlighting their intertwined business relationship and mutual goals in developing advanced AI cloud technology. CRWV Analyst Coverage New analyst coverage from Cantor Fitzgerald with an Overweight rating and $116 price target was also pushing CoreWeave's stock higher on Thursday. Other recent analyst upgrades have added momentum: Last week, H.C. Wainwright shifted CoreWeave's rating to Buy and raised its price target to $180, citing attractive long-term fundamentals despite market volatility and lock-up expiration pressures. Arete Research also upgraded the stock to a Strong Buy, and Mizuho lifted its price target to $150, reflecting broad optimism across Wall Street. Key Takeaway: Nvidia's AI revenue boom, CoreWeave's infrastructural investments and strong analyst sentiment point to a turnaround for CoreWeave stock. CRWV Stock Price: According to data from Benzinga Pro, CoreWeave shares were up 7.60% at $104.30 at the time of publication on Thursday. Read Next: Space Stock Tracker: Rocket Lab Launches, Starlink Outages Photo: Shutterstock CRWVCoreWeave Inc$103.636.91%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentumN/AGrowthN/AQualityN/AValue19.21Price TrendShortMediumLongOverviewNVDANVIDIA Corp$179.68-1.06%Market News and Data brought to you by Benzinga APIs

Is This Artificial Intelligence (AI) Stock the Next Nvidia? | The Motley Fool

CoreWeave is a hot AI stock, but it doesn't have Nvidia's long-term advantages. Nvidia (NVDA 1.65%) has been one of the best plays on the booming artificial intelligence (AI) market over the past decade. From fiscal 2015 to fiscal 2025 (which ended this January), its revenue grew at a CAGR of 39% as its EPS increased at a CAGR of 58%. Most of that growth was driven by its brisk sales of data center GPUs, which are used to process complex machine learning and AI tasks. Nvidia now controls more than 90% of the global discrete GPU market, according to JPR, and all of the world's top AI companies -- including OpenAI, Microsoft, and Meta Platforms -- use its data center chips. That's why Nvidia's stock soared 31,430% over the past 10 years and turned it into the world's most valuable company with a market cap of $4.26 trillion. But even after that millionaire-making run, Nvidia still doesn't seem that expensive at 39 times its forward adjusted earnings. From fiscal 2025 to fiscal 2028, analysts expect its revenue and EPS to grow at a CAGR of 33% and 31%, respectively, as the AI market keeps expanding. So for now, Nvidia remains one of the simplest and safest ways to invest in the AI market. But could CoreWeave (CRWV 3.38%), a hypergrowth AI stock that has a much smaller cap of $45 billion, deliver similarly life-changing gains as Nvidia in the future? CoreWeave was founded in 2017 as a cryptocurrency miner that bought a lot of GPUs to mine Ether. But after the crypto market crashed in 2018, it stopped mining Ether and repurposed its GPUs to process AI tasks. In 2022, it spent roughly $100 million to install Nvidia's H100 GPUs in its own data centers. It then used those GPUs as collateral to secure additional funding to open more data centers and buy more GPUs. That bold strategy impressed Nvidia, which invested $100 million in CoreWeave in 2023. Nvidia invested another $250 million in CoreWeave's IPO this March. It increased that stake over the following months and now holds 24.28 million shares, which are worth roughly $2.2 billion today. That makes it Nvidia's biggest investment in a single stock. Unlike bigger cloud infrastructure platforms -- which provide a wide range of computing and storage services -- CoreWeave only provides cloud-based GPUs for processing AI tasks. It claims that streamlined approach allows it to process AI tasks roughly 35 times faster and 80% cheaper than traditional cloud infrastructure platforms. CoreWeave now operates 33 data centers in the U.S. and Europe. That's up from 15 centers at the end of 2024, 14 centers in 2023, and just three centers in 2022. Its top customers include OpenAI, Meta, and IBM. Its revenue surged from $16 million in 2022 to $1.92 billion in 2024, then grew another 276% year over year to $2.19 billion in the first half of 2025. Analysts expect its revenue to rise 173% to $5.25 billion for the full year. But as it grew, its net losses widened from $31 million in 2022 to $863 million in 2024. Its operating expenses skyrocketed as it opened more data centers, purchased more GPUs from Nvidia, and paid higher energy bills. Its net loss widened again to $661 million in the first half of 2025, and analysts expect a net loss of $1.1 billion for the year. In addition, CoreWeave has been funding most of its expansion with debt, which caused its annual interest payments to surge from $28 million in 2022 to $784 million in 2024. Its planned $9 billion acquisition of Core Scientific (CORZ -1.88%) -- which will be entirely funded in newly issued shares -- could still drive those debt levels even higher as it integrates the company's 10 data centers into its platform. At the end of the first half of 2025, CoreWeave still had $1.15 billion in cash and equivalents, but it was shouldering $22.42 billion in total liabilities. So even though it's clearly benefiting from the AI boom, it hasn't proven its business model is sustainable yet. With an enterprise value of $65.5 billion, it isn't a bargain at 12.5 times this year's sales. CoreWeave has plenty of growth potential, but I wouldn't call it the "next Nvidia." It's expanding rapidly and enjoys an early mover's advantage in its niche market, but bigger cloud competitors like Amazon's AWS could eventually roll out their own cloud-based GPUs at lower prices. It also hasn't monopolized a critical link of the AI market in the same way as Nvidia has with its proprietary chips. Those weaknesses could prevent it from ever breaking even. A lot of its future sales growth has already been baked into its valuations -- so a few quarters of slowing growth could easily derail the bullish thesis and bring in the bears. So for now, CoreWeave remains a good speculative growth play on the AI market, but it probably won't come close to replicating Nvidia's massive gains.