CoreWeave (CRWV) stock has plunged nearly 33% since the company announced its second-quarter results. The artificial intelligence (AI)-powered cloud computing company generated a 207% jump in its Q2 revenue but reported a larger-than-anticipated loss. Moreover, concerns about near-term volatility due to the end of the lock-up period, which allows early investors and insiders to sell the stock, are also weighing on investor sentiment. While Cathie Wood bought the dip in CoreWeave stock by purchasing 120,229 shares via the ARK Next Generation Internet ETF (ARKW) on Friday, Wall Street remains cautious due to high leverage and significant capex. Despite the recent pullback, CRWV stock has risen about 150% from its initial public offering (IPO) price of $40.
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Meanwhile, CoreWeave’s key AI chip supplier, Nvidia (NVDA), increased its stake in the AI infrastructure company in Q2 2025.
Analysts Are Cautious on CoreWeave Stock
Following the Q2 print, Bank of America Securities analyst Bradley Sills lowered the price target for CoreWeave stock to $168 from $185 and reiterated a Hold rating. The 4-star analyst noted that a 4% quarter-over-quarter rise in backlog, excluding the OpenAI deal, was somewhat disappointing, though it does not include a second announced expansion deal that will be included in Q3.
Sills added that the company didn’t provide much information about the status of the Core Scientific (CORZ) deal. He expects the speculation about regulatory scrutiny to remain an overhang on CRWV stock. Sills also expects the lock-up expiration to be an overhang on CoreWeave stock. That said, the analyst believes that CoreWeave remains well-positioned to benefit from a ramping AI infrastructure industry.
Meanwhile, Morgan Stanley analyst Keith Weiss reiterated a Hold rating on CoreWeave stock with a price target of $91. The 4-star analyst stated that accruing and expanding large contracts from the most demanding generative AI users validate CoreWeave’s strong positioning for the ramping graphics processing units (GPU) build-out. Weiss thinks that large contract wins from Microsoft (MSFT) and ChatGPT-maker OpenAI are “enabling a top-line scaling function,” but present a double-edged sword. While on one side, these deals validate CRWV’s strong technology from the most demanding AI customers, on the other hand, they bring in a level of customer concentration risk, setting a high bar for other customers to become meaningful to the overall story.
Is CoreWeave Stock a Good Investment?
Overall, Wall Street is sidelined on CoreWeave stock, with a Hold consensus rating based on 16 Holds, six Buys, and two Sell recommendations. The average CRWV stock price target of $115.29 indicates 15.3% upside potential from current levels.
