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Investing.com -- CoreWeave Inc. (NASDAQ:CRWV) stock jumped 2.5% in premarket trading after two Wall Street firms upgraded the cloud-computing provider, citing strong AI-related demand and supply constraints in the industry.
Melius analyst Ben Reitzer upgraded CoreWeave from Hold to Buy with a price target of $165.00, while Wells Fargo analyst Michael Turrin raised his rating from Equal Weight to Overweight and increased his price target to $170.00 from $105.00.
The upgrades come as CoreWeave is positioned to benefit from the current AI build cycle and industry shortages expected to persist into 2026. Wells Fargo’s Turrin highlighted that while many software companies are waiting for AI monetization to materialize, CoreWeave is already capitalizing on elevated demand.
"Supply constraints continue, with hyperscaler shortages continuing through (at least) early-2026. See potential for CRWV to pick up market share in the interim," noted Turrin, who raised his revenue estimates for fiscal years 2026 and 2027 by 5% and 9% respectively.
The analyst also pointed to NVIDIA’s (NASDAQ:NVDA) recent commitment to purchase all of CoreWeave’s unused capacity through 2032, effectively giving the company "a blank check to build out new capacity for 6+ years."
Both analysts referenced expanding relationships with major tech companies, with Wells Fargo mentioning that Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOGL) have recently increased their business with CoreWeave, including approximately $0.5 billion in accounts receivable from a third unnamed customer that the firm believes to be Google.
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