AI infrastructure firm CoreWeave (CRWV) is seeing its shares rally on Monday for a couple of reasons. To begin with, Deutsche Bank shared a positive outlook for the company. Indeed, five-star analyst Brad Zelnick told clients that several good signs are coming together that could lead to big increases in CoreWeave’s revenue and remaining performance obligations over the next quarter or two. Even though there’s still some uncertainty about AI’s long-term future, he noted that investors are rewarding strong short-term performance.
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Furthermore, Zelnick, who rates the stock a Buy, said that CoreWeave is set to benefit from the new capacity that is expected to go live in the next 12 to 18 months. This future infrastructure hasn’t been assigned to any customer contracts yet, but the company has strong partnerships with major tech firms like OpenAI, Microsoft (MSFT), Meta (META), Nvidia (NVDA), and another unnamed top-tier cloud provider. As a result, these relationships could help CoreWeave fill its new capacity quickly once it becomes available.
He also pointed out that the market may not fully appreciate how strong and technically advanced these partnerships are. Zelnick’s industry research shows that CoreWeave continues to stand out as a leader in providing high-performance GPU services at scale. Separately, CoreWeave struck a deal with chipmaker Nvidia that will see Nvidia purchase any unsold cloud computing capacity from CoreWeave until April 13, 2032. The agreement is valued at $6.3 billion and helped further boost the stock price.
Is CRWV a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRWV stock based on nine Buys, 14 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $137.70 per share implies 17.2% upside potential.
