CoreWeave ($CRWV) is pulling in institutional money and analyst support, even as the company continues to burn cash building out its AI cloud infrastructure. The stock opened Tuesday at $105.49, well off its 52-week high of $187.00 but above its low of $63.80.
CoreWeave, Inc. Class A Common Stock, CRWV
Deutsche Bank reiterated a Buy rating and kept its $135 price target in place, citing strong demand for AI infrastructure as the driver behind both revenue growth and backlog expansion at cloud providers like CoreWeave.
The bank acknowledged that margins across the sector are under pressure. CoreWeave’s gross profit margin sits at 69%, but the company posted a loss of $3.15 per share over the last twelve months as it pours capital into scaling its platform.
Deutsche Bank noted that the investment community has found it difficult to assess the economics of AI businesses within the broader cloud market, but said CoreWeave’s long-term contracts offer attractive returns while reducing risk over their multi-year terms.
Analysts on average expect sales to grow this year despite the company not yet turning a profit. The consensus EPS forecast for the current year stands at -$4.58.
The institutional interest in CoreWeave has been hard to ignore. PNC Financial Services raised its stake by 248.9% in Q4, adding 38,205 units and bringing its total to 53,556 worth roughly $3.84 million.
Vanguard went even bigger, increasing its position by 275.6% to nearly 28 million units valued at around $2 billion. Proficio Capital Partners and Invesco also made large moves into the stock during the third quarter.
The stock was added to the Russell 3000 index, which is expected to draw additional passive fund buying.
CoreWeave recently closed a $3.1 billion high-performance computing infrastructure loan — described as the first publicly syndicated HPC infrastructure-backed loan of its kind. The facility received ratings of Ba2 from Moody’s and BB+ from Fitch.
The company also launched CoreWeave Sandboxes, a product offering secure environments for AI researchers to run workloads. It’s available through CoreWeave Kubernetes Service and a serverless option via Weights & Biases.
CoreWeave topped the inference speed benchmark for Moonshot AI’s Kimi K2.6 model, delivering 205 tokens per second.
On the analyst side, Wells Fargo raised its price target from $135 to $155 with an overweight rating. Jefferies lifted its target from $120 to $160, also with a buy. Citizens JMP has a $180 target. Macquarie recently upgraded to outperform.
Not everyone is bullish. Bernstein SocGen maintained an underperform rating, raising its target only to $67, citing concerns about potential competition from a new AI cloud venture between Blackstone and Alphabet.
Of 33 analysts covering the stock, 19 rate it Buy, 12 Hold, and 2 Sell. The average price target is $129.63.
Insider selling has been elevated, with over $2.8 billion in stock sold in the past 90 days, though filings indicate the transactions were made under pre-arranged Rule 10b5-1 plans to cover tax withholding on equity vesting.
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