Shares of CoreWeave (CRWV) are surging in today’s trading as investor interest continues to grow. Indeed, since its IPO less than two months ago, the stock has surged 150%, thanks to strong first-quarter results, solid guidance, and a major $4 billion deal with OpenAI. These factors have helped increase investor confidence in CoreWeave’s role as a key player in the growing AI infrastructure market.
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As a result, Citi Research responded by raising its price target for the stock from $43 to $94. Analysts led by four-star rated Tyler Radke said that the OpenAI deal supports CoreWeave’s reputation as a high-growth company and helps ease the fears of a slowdown in AI-related spending. However, they kept a “Neutral/High Risk” rating after noting that while the rapid stock rise is partly justified by strong demand and big spending in cloud computing, they’d like to see better profitability and more customer variety.
It is worth mentioning that CoreWeave’s second-quarter and full-year forecasts also beat expectations, which shows that there is strong demand for its AI data centers. The company now expects $5 billion in revenue for the year, which is 161% higher than last year and 8% above Wall Street estimates. Radke said that this shows CoreWeave is confident about continued growth and rising demand in the AI space.
Is CRWV a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRWV stock based on seven Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $47.42 per share implies 55.1% downside risk.
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