CoreWeave (CRWV) stock closed 4% higher yesterday after the AI infrastructure firm teamed up with Poolside, an AI startup backed by Nvidia (NVDA), to build a massive new data center complex in West Texas, known as Project Horizon. Following the announcement of the deal, top Evercore ISI analyst Amit Daryanani reiterated an Outperform rating on the stock with a price target of $175 per share. The price target implies a 25% potential upside from current levels.
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Daryanani said the deal brings several positives for CoreWeave, including a larger order backlog, a wider customer base, and more room to grow its data center capacity.
It is worth noting that Daryanani ranks 121 out of more than 10,000 analysts tracked by TipRanks. He has a success rate of 66%, with an average return per rating of 19.4% over a one-year timeframe.
Top Analyst Highlights Upside from Poolside Deal
The 5-star analyst said the new deal with Poolside shows how CRWV is quickly growing its presence in the AI data center market. Under the agreement, CoreWeave will provide over 40,000 Nvidia GPUs to Poolside, adding major capacity to its network.
Although the contract details were not shared, Daryanani estimated that at around $3 per GPU hour over five years, the deal could add about $5 billion to CoreWeave’s backlog. Together with other recent contracts, he believes the company’s total backlog may now be above $55 billion, though the Q3 figure is likely closer to $50 billion, since this deal was finalized after the quarter ended.
He also noted that CoreWeave will be the anchor tenant for Poolside’s Project Horizon, a 2-gigawatt AI data center campus in West Texas. The company will start with 250 megawatts of capacity, with the option to expand by another 500 MW. The analyst estimated that the 40,000 GPUs will use around 100 MW of the site, leaving room for more customers or future growth.
Is CRWV Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRWV stock based on 14 Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $152.60 per share implies 9.59% upside potential.
