CoreWeave (NASDAQ:CRWV) is a name that has quickly become hot property on Wall Street, having made plenty of noise – and gains – since its March IPO. Actually, “hot property” is entirely fitting here, given the AI infrastructure player makes bank by renting out its GPU-filled data centers to its customers.
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And the demand for its services seems to only be getting stronger. In fact, for Wells Fargo analyst Michael Turrin, the demand signals are now “growing too strong to ignore.”
As such, Turrin has not only upgraded his CRWV rating from Equal Weight (i.e., Neutral) to Overweight (i.e., Buy) but has also raised his price target from $105 to $170, suggesting the stock will climb 28% higher in the months ahead. “While the LT future of the AI market remains uncertain,” Turrin went on to say, “we elect to upgrade to Overweight as a result of CRWV’s demonstrated ability to expand into the largest consumers of AI compute, potentially enabling greater share gains over time.” (To watch Turrin’s track record, click here)
Turrin thinks hyperscalers serve as the most reliable indicators of underlying AI compute and services demand, due to their scale, extensive customer relationships, and broad range of offerings. In recent quarters, cloud providers have reported AI demand outpacing available GPU capacity, continuing a narrative of supply shortages that has persisted for nearly two years. Microsoft and Google anticipate these “supply-demand imbalances” to continue through the rest of 2025, potentially abating only in early 2026, while Amazon expects constraints to last several quarters, likely until mid-2026. These shortages suggest limited growth for the time being. While power availability has been identified as the primary constraint, slower rollouts of new chip generations – such as Nvidia’s Blackwell series – and related infrastructure components, including networking and racks, have also contributed. “In our view,” says Turrin on the matter, “these supply constraints bode well for CRWV who has proven able to, at times, better navigate the supply-demand imbalance, solely focused on procuring and lighting up capacity. We’re expecting this multi-qtr period of latent demand could result in greater opportunities for CRWV, incremental to our prior assumptions.”
Meanwhile, a recent deal with Nvidia helps mitigate near-term risk. On September 15, CoreWeave disclosed that Nvidia is contractually obligated to purchase any unsold capacity over the next 6.5 years, through April 2032. The analyst views this arrangement as “effectively encouraging” CoreWeave to continue expanding its GPU capacity, regardless of immediate customer demand. Under this agreement, CoreWeave – as a “leading neocloud” – is incentivized to scale its infrastructure rapidly, positioning itself as a key alternative to major hyperscale platforms, which are developing their own hardware fleets that could eventually compete with Nvidia. The initial contract value is $6.3 billion and is now regarded as “considered material.” While the analyst thinks CoreWeave is unlikely to struggle in the near term to find buyers for its additional GPU capacity – given ongoing supply constraints cited by hyperscalers – the Nvidia backstop “helps to shore up confidence” in the medium- to long-term expansion, helping the company fully monetize its GPU fleet over the coming years.
On the Street, the CRWV believers and doubters split into 15 Buys and 11 Holds, respectively, with an additional 2 Sells all adding up to a Moderate Buy consensus rating. The average target stands at $145.31, a figure that factors in a one-year gain of 9.5%. (See CRWV stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.