BofA Upgrades CoreWeave (CRWV) to Buy, Sets $100 Price Target

TLDR

• BofA analyst Tal Liani has resumed coverage of CoreWeave (CRWV) with a Buy rating and a $100 price target.
• The stock was trading near $81.96, suggesting approximately 22% potential growth to BofA’s target.
• BofA believes CoreWeave is well-positioned to gain a portion of the $79 billion AI infrastructure-as-a-service market.
• The mismatch between AI compute supply and demand is not anticipated to improve until after 2029.
• CoreWeave reported a 168% increase in revenue over the past twelve months.

(SeaPRwire) –   BofA Securities has resumed its coverage of CoreWeave (CRWV), assigning a Buy rating and a $100 price target. The decision is based on robust demand for AI computing power and the company’s expanding roster of prominent partners.

CoreWeave, Inc. Class A Common Stock, CRWV

Analyst Tal Liani’s previous rating on the stock was Neutral. This reinstatement signals a more positive outlook on CoreWeave’s future prospects.

At the time of the analyst note, the stock price was approximately $81.96. The $100 target from BofA indicates a potential gain of about 22% from that price.

The firm identified CoreWeave’s custom software designed for AI tasks as a major competitive advantage. It also emphasized the company’s partnerships with Nvidia and OpenAI as key elements of its strong market position.

AI Demand Driving Infrastructure Needs

BofA stated that the emergence of agentic AI is increasing infrastructure demands throughout the sector. The firm noted that CoreWeave assists clients in managing challenges related to supply, capacity, and power shortages.

The analyst projects that the imbalance between the demand for and supply of AI compute will persist until at least 2029. This prolonged period of favorable conditions is a fundamental part of BofA’s investment rationale.

BofA values CoreWeave at 21 times its estimated EV/EBIT for calendar year 2027, which is higher than the peer average of 16 times. The company’s 168% revenue growth over the last twelve months supports this premium valuation.

Currently, CoreWeave trades at a trailing EV/EBITDA multiple of 28.6 times. An analysis by InvestingPro suggests the stock is overvalued compared to its Fair Value estimate, presenting a contrasting view to BofA’s thesis.

Recent Moves at CoreWeave

BofA is not the only institution showing interest. Oppenheimer recently began coverage with an Outperform rating, citing CoreWeave’s GPU infrastructure as a primary asset.

Bernstein adopted a contrary stance, initiating coverage with an Underperform rating. The firm expressed worries about future market conditions, even with the current momentum driven by demand.

Regarding products, CoreWeave incorporated Nvidia HGX B300 chips into its cloud platform; these were introduced at Nvidia’s GTC conference. The chips enhance CoreWeave’s infrastructure with greater memory and bandwidth.

CoreWeave also revealed a partnership with Cline, integrating its W&B Inference into Cline’s coding platform. This agreement provides Cline with access to CoreWeave’s AI infrastructure for both training and inference tasks.

In another development, CoreWeave is collaborating with Cerebras Systems and BCE Inc. to construct a 300-megawatt AI data center in Saskatchewan. Operations are scheduled to commence in the first half of next year.

The new facility will distribute computing resources to CoreWeave and Cerebras, thereby increasing CoreWeave’s physical presence in North America.

BofA recognized that risks are associated with the company’s standing but reaffirmed its confidence in CoreWeave’s capacity to maintain and increase its market share in the AI infrastructure sector.