Key Highlights
- CRWV shares rose more than 10% Monday, following a 10.87% surge from the previous Friday
- DA Davidson increased its price target by 40%, moving from $125 to $175
- Wall Street analysts highlight CoreWeave as “becoming the neocloud of choice” for leading AI companies
- The cloud infrastructure provider now serves nine out of the ten largest AI model developers
- Pro-forma backlog reaches approximately $87.8 billion
CoreWeave shares have enjoyed remarkable momentum recently. Following a nearly 11% gain last Friday, the stock climbed an additional 10% on Monday as financial analysts continued expressing strong optimism after the company announced two significant partnership deals.
CoreWeave, Inc. Class A Common Stock, CRWV
The momentum came from a long-term cloud infrastructure partnership with Anthropic, unveiled shortly after CoreWeave disclosed an enhanced $21 billion arrangement with Meta.
DA Davidson’s Alex Platt characterized the Anthropic partnership as definitive evidence that “CoreWeave is becoming the neocloud of choice” among premier AI enterprises. He elevated his price target by 40%, shifting from $125 to $175, suggesting nearly 60% potential upside from current trading levels.
Cantor Fitzgerald also shared its perspective, maintaining its Overweight rating and $149 price target following confirmation of the Meta arrangement. Analyst Brett Knoblauch kept his recommendation steady, highlighting the scope and timeline of Meta’s commitment as encouraging indicators.
The Meta arrangement represents a substantial commitment. The $21 billion deal encompasses new computational infrastructure through December 2032 and incorporates the activation of a prior option for supplementary capacity extending through April 2032. This brings CoreWeave’s aggregate commitments with Meta to $35.2 billion.
The Anthropic partnership adds another prominent client to CoreWeave’s roster. The infrastructure provider reports that nine of the industry’s ten leading AI model developers now utilize its services. Computing resources associated with the Anthropic agreement are scheduled to become operational later this year.
Wall Street Consensus Strengthens
Macquarie’s Paul Golding joined the optimistic commentary, stating the Anthropic collaboration demonstrates CoreWeave’s “ecosystem is becoming structural.” This terminology suggests analysts view these partnerships as foundational relationships rather than temporary arrangements.
Among Wall Street firms, the overall rating on CRWV stands at Moderate Buy, derived from 14 Buy ratings, eight Hold ratings, and one Sell rating from 23 analysts covering the stock during the past three months. The consensus price target of $120.10 suggests approximately 9% upside potential from present levels — although several individual analyst targets now exceed that figure significantly.
The stock has surged 133% throughout the past year and recently surpassed $102. InvestingPro calculates its Fair Value at $98.09, indicating current trading slightly above that valuation.
Previous Headwinds
The journey hasn’t been entirely without challenges. CoreWeave encountered earlier skepticism from investors questioning its scalability. Legal action alleged the company exaggerated its operational capabilities while minimizing dependence on external developers for data center construction.
These concerns seem to have diminished as the company continues securing major contracts.
CoreWeave’s revenue reached $5.1 billion over the trailing twelve months, representing 168% year-over-year growth. Wall Street projects 144% revenue expansion this year, although the company remains unprofitable currently.
The company also recently completed a $3.5 billion private placement of convertible senior notes maturing in 2032, expanded from an original $3 billion offering.
CoreWeave’s total pro-forma backlog currently stands at approximately $87.8 billion.
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