CoreWeave Stock Surges Amid Strong AI Demand and Microsoft's Capex Boost

CoreWeave is a buy after Microsoft's strong earnings report, Citi says

Investors should buy the recent dip in CoreWeave as strong AI demand will power shares higher, according to Citi. Analyst Tyler Radke upgraded the artificial intelligence cloud computing stock to buy from neutral. His price target of $160 implies upside of 55% from Wednesday's close. Despite more than doubling since its IPO in late March, CoreWeave has tumbled nearly 37% over the past month, with investors skeptical about the company's $9 billion acquisition of Core Scientific. That said, Radke noted that Microsoft's strong quarterly figures signal AI demand remains strong -- which will boost CoreWeave long term. CRWV 1M mountain CRWV in past month "We come away with a much stronger fundamental view on the demand picture highlighted by MSFT (72% of 1Q25 revenue) beating/raising on Azure and raising capex with upside to finance leases," Radke wrote. "We feel incrementally more confident about the durability of AI demand and CRWV's position in the market, though still hold some concerns around customer concentration and Coreweave's ability to move up the stack," he added. CoreWeave shares popped more than 13% in the premarket, while Microsoft traded 8% higher. Radke's upgrade puts him in the minority on Wall Street. LSEG data shows that 17 of 24 analysts covering the stock rate it a hold, while three others have an underperform rating on it. Just four analysts rate CoreWeave as a buy or strong buy.

CoreWeave Stock Slides In Quiet Trading As Investors Weigh Growth Against Risk - CoreWeave (NASDAQ:CRWV)

Shares of AI infrastructure provider CoreWeave Inc CRWV are trading lower Wednesday afternoon, continuing a period of significant volatility despite a lack of company-specific news. Here's what investors need to know. CRWV stock is seeing a decline in price. Track it now here. What To Know: The decline extends recent weakness as investors grapple with the company's aggressive expansion plans versus mounting concerns over valuation and customer concentration. The stock has been a battleground for analysts following its meteoric rise of over 240% since its March 2025 IPO. Bulls point to CoreWeave's ambitious strategy, highlighted by its recent $9 billion all-stock agreement to acquire Core Scientific and a subsequent commitment to build a $6 billion AI data center in Pennsylvania. On July 21, Barclays fueled optimism by raising its price target to $140, citing the company's growth trajectory. However, a bear case emerged on July 18 when HSBC initiated coverage with a Reduce rating and a stark $32 price target. The firm's primary concern is CoreWeave's heavy reliance on a handful of clients, noting that Microsoft alone accounted for 72% of revenue in the first quarter of 2025. This followed a series of downgrades from firms like Mizuho and Stifel earlier in July, which questioned the financial implications of the costly Core Scientific acquisition. Wednesday's price action suggests that in the absence of fresh catalysts, investor anxiety over CoreWeave's concentrated revenue base and high capital expenditures could be outweighing the excitement for its long-term AI potential. CRWV Price Action: According to data from Benzinga Pro, CoreWeave shares closed down 5.38% to $102.89 on Wednesday. The stock has a 52-week high of $187 and a 52-week low of $33.52. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedHow To Buy CRWV Stock Besides going to a brokerage platform to purchase a share -- or fractional share -- of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, CoreWeave is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Read Also: * Marvell Stock Rebounds On AI Momentum, New Global Chip Partnership Image: Shutterstock CRWVCoreWeave Inc$104.14-4.23%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/AGrowthN/AQualityN/AValue14.08Price TrendShortMediumLongOverview 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

Why CoreWeave Stock Is Skyrocketing Today | The Motley Fool

The artificial intelligence (AI) cloud computing company is seeing its stock move higher after a round of earnings releases from major tech companies show AI capital expenditures are not slowing down anytime soon. Meta Platforms and Microsoft both recently released their second-quarter earnings reports, showing that their enormous AI-focused capital expenditures (capex) are not slowing down. In fact, they are accelerating. Meta's capex in Q2 nearly doubled year over year while Microsoft's grew by 22% year over year, reaching $17.1 billion. Incredibly, Microsoft told investors it plans to spend $30 billion in Q3, 60% more than analysts expected. Microsoft's increase is especially important for CoreWeave, not just because of its magnitude, but because Microsoft is by far its biggest customer. There is clearly a demand for AI-optimized cloud computing capacity that, at least at the moment, outstrips big tech's ability to build its own infrastructure. Citi analyst Tyler Radke upgraded his rating for CoreWeave stock after Microsoft's earnings made clear there is still enormous and growing demand for what CoreWeave supplies. The analyst upgraded the stock from neutral to buy and set a price target of $160, a significant upside from its current price. While it's clear there is significant demand for CoreWeave's infrastructure right now, I have doubts about its viability long term. Building AI cloud computing infrastructure is enormously expensive, and the company will continue to have to raise funds to expand. It is also enormously expensive to operate, and there is a real question of when -- and frankly, if -- the company can reliably deliver a profit. Furthermore, while big tech companies are leaning on third parties like CoreWeave at the moment, they are also rapidly expanding their own internal capacities. There is a real risk that over time, they will no longer need CoreWeave. It feels like too shaky of a moat for me, and I would avoid the stock.