CoreWeave (CRWV) stock rallied more than 12% in Thursday’s pre-market trading after Citi analyst Tyler Radke upgraded it to Buy from Hold and maintained a price target of $160. The 4-star analyst cited “stronger fundamental view on the demand picture,” highlighted by rising capital spending by Microsoft (MSFT), a major customer of CoreWeave. Notably, Microsoft accounted for 72% of CoreWeave’s Q1 2025 revenue.
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CoreWeave is scheduled to announce its second-quarter results on August 11. Wall Street expects the artificial intelligence (AI)-powered cloud computing company to report a loss per share of $0.23 on revenue of $1.08 billion.
Earlier this month, CRWV stock rallied following the announcement that it is the first cloud provider to deploy Nvidia’s (NVDA) next-generation artificial intelligence (AI) chips – the Blackwell Ultra GPUs (graphics processing units). As of Wednesday’s closing, CRWV stock was up about 157% from its initial public offering (IPO) price of $40. However, the stock has declined 37% over the past month due to valuation concerns.
Here’s Why Citi Turned Bullish on CoreWeave Stock
Citi closed its 90-day “negative catalyst watch” on CoreWeave, with the stock down 45% from its peak. The rating upgrade follows the strong performance of Microsoft’s Azure cloud computing platform and notable cloud announcements by Oracle (ORCL), which have improved Radke’s view about the demand backdrop.
The analyst stated that he now has greater confidence in near-term revenue predictability, given CoreWeave’s noncancellable contracts with 4-year average durations, which he believes could lead to beat and guidance raises in the upcoming quarters.
Radke said that he has a much stronger fundamental view on the demand picture, given recent AI monetization tailwinds from hyperscaler peers. He views CRWV as a leader in the GPU-as-a-Service (GPUaaS) market and believes that the company has a healthy growth potential in addition to newer opportunities such as “verticalization up the software stack.”
However, Radke rates CRWV stock as “High Risk” due to the company’s limited trading history and high customer concentration, which might make it more sensitive to greater volatility amid macro challenges than many established software players with higher trading volumes.
Is CRWV Stock a Buy, Sell, or Hold?
Overall, Wall Street is sidelined on CoreWeave stock, with a Hold consensus rating based on four Buys, 14 Holds, and two Sell recommendations. The average CRWV stock price target of $107.13 indicates 4.1% upside potential.
