CoreWeave (CRWV) operates a specialized cloud platform that provides infrastructure for generative artificial intelligence (AI) workloads, offering GPU and CPU compute, storage, networking, and managed services. A New Jersey-based company, CoreWeave has positioned itself as a crucial infrastructure provider for the AI revolution.

Wall Street analysts have initiated coverage of the newly public company with bullish outlooks. Both Jefferies and Stifel are covering CoreWeave stock with “Buy” ratings, setting price targets of $51 and $55, respectively. At the time of writing, CRWV stock trades near $41 per share. 

Analysts Are Bullish on CoreWeave Stock

The optimism stems from CoreWeave’s ability to scale and host AI compute workloads reliably, attracting clients like Microsoft (MSFT), Meta Platforms (META), and OpenAI. Stifel analysts project that the company’s revenue will grow more than eightfold by fiscal year 2027, driven by contracted demand with average durations of 4 to 4.5 years.

Analysts cite several competitive advantages for CoreWeave, including its “proprietary middleware, bare metal Kubernetes capabilities, and preferred access” to Nvidia (NVDA) GPUs. These technical moats have helped CoreWeave establish itself as a leading GPU-as-a-service provider with infrastructure built for AI applications.

However, investors should consider specific risks. CoreWeave faces a capital-intensive business model, with Stifel expecting net debt to rise from under $8 billion to over $30 billion by 2027 to fund expansion. Customer concentration and potential tariff-related costs also present challenges. Additionally, accounting assumptions around GPU useful life could impact cash flow projections.

Despite these concerns, analysts believe CoreWeave trades at a discount to AI infrastructure peers and view the long-term opportunity as compelling, with the infrastructure buildout creating competitive advantages in a high-barrier industry.

Is CoreWeave Stock a Good Buy Right Now?

CoreWeave operates 32 data centers globally, and reported revenue of $1.9 billion in 2024, an increase of 737% year-over-year. Founded in 2017 as a cryptocurrency mining operation, CoreWeave pivoted to AI infrastructure after Ethereum (ETHUSD) changed its validation system. CoreWeave leveraged its existing GPU hardware to build a cloud platform optimized explicitly for generative AI workloads.

This shift has attracted major clients including Microsoft, Meta, International Business Machines (IBM), and recently, OpenAI. In fact, Microsoft is CoreWeave’s largest customer, accounting for 62% of its 2024 revenue.

Despite impressive growth, CoreWeave faces significant challenges. It reported a $863.4 million net loss in 2024, up 45% from the previous year, due to rising capital expenditures and operating costs. 

What Is the Target Price for CRWV Stock?

While customer concentration and debt levels present significant risks, CoreWeave’s purpose-built AI infrastructure positions it to capitalize on growth in AI computing demand. The cloud provider differentiates itself through infrastructure optimized for AI, including liquid cooling systems that allow for denser server configurations. This focus has helped CoreWeave compete against larger cloud providers like Amazon (AMZN) and Google (GOOGL).

While CoreWeave is forecast to report an adjusted loss of $0.27 per share in 2025, its earnings might improve to $3.33 per share in 2029. So, if the tech stock is priced at 30 times forward earnings, it should trade around $100 per share in early 2029.