Street Calls of the Week
Investing.com - Wells Fargo upgraded CoreWeave (NASDAQ:CRWV) from Equal Weight to Overweight on Tuesday, while significantly raising its price target to $170.00 from $105.00. The stock has shown remarkable momentum, surging 233% over the past six months and 12% in the last week alone, with the current stock price at $133.23.
The upgrade comes as Wells Fargo sees CoreWeave benefiting from the current elevated AI build cycle and persistent industry shortages expected to continue into 2026, while "the rest of software is stuck waiting for AI monetization to surface." With a substantial market capitalization of $69 billion, CoreWeave currently trades at premium valuation multiples across multiple metrics, according to InvestingPro data.
Wells Fargo increased its revenue forecasts for CoreWeave, raising fiscal year 2026 estimates by 5% and fiscal year 2027 projections by 9%, citing latent demand that will likely boost second-half 2025 and fiscal year 2026 bookings.
The firm noted that supply constraints continue with hyperscaler shortages expected to persist through at least early 2026, creating potential for CoreWeave to gain market share during this period, with both Microsoft and Google recently expanding their relationships with the company.
Wells Fargo also highlighted NVIDIA’s recent commitment to purchase all unused capacity through 2032, which effectively gives CoreWeave "a blank check to build out new capacity for 6+ years."
In other recent news, CoreWeave has announced a significant expansion of its investment in the United Kingdom, committing an additional £1.5 billion to its AI infrastructure. This brings its total UK investment to £2.5 billion, aiming to support the UK’s AI workload infrastructure and create local jobs. In financial developments, CoreWeave’s stock was upgraded to Market Outperform by Citizens JMP, which set a price target of $180.00, citing accelerating trends in the GPU-as-a-Service market. Additionally, Loop Capital initiated coverage on CoreWeave with a Buy rating and a price target of $165.00, highlighting potential for profit and loss upside.
Cantor Fitzgerald reiterated its Overweight rating on CoreWeave, maintaining a $116.00 price target, following a new $6.3 billion order agreement with Nvidia under an existing Master Services Agreement. Barclays also reiterated its Equalweight rating on the company, noting the same Nvidia deal, which includes a commitment from Nvidia to purchase any unsold capacity through April 2032. These recent developments indicate a strategic focus on expanding infrastructure and strengthening partnerships in the AI and cloud computing sectors.
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