CoreWeave (CRWV) stock has dropped nearly 39% over the past three months and is trading at a 61% discount to its all-time high of $187, recorded on June 20, 2025. This sharp selloff in the artificial intelligence (AI) infrastructure provider’s stock raises serious doubts: Will CoreWeave rebound from these steep lows in 2026?
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A failed merger with data center provider Core Scientific (CORZ), delays in infrastructure buildouts, and sharp criticism from short seller Jim Chanos have triggered the selloff.
Yet, CoreWeave boasts a $55.6 billion revenue backlog, with about 40% of that, over $22 billion, coming due in the next 24 months. This means strong future cash flow from current infrastructure builds.
CRWV Stock: The Bull Thesis
Despite the current downfall, CoreWeave bulls remain optimistic about its future potential. Prominent hedge fund manager Cathie Wood has been crypto-trims-tesla-and-sofi-stakes-12-16-25">leveraging the dip in CRWV stock and accumulating its shares in the ARK funds.
Wedbush’s top analyst Daniel Ives believes that CoreWeave stands to benefit from surging demand for AI computing power, including GPUs (graphics processing units) and specialized components, which are currently outstripping supply. He also added CRWV to his IVES AI 30 list heading into 2026.
Moreover, Roth MKM’s five-star analyst Rohit Kulkarni initiated coverage with a Buy rating and $110 price target, implying 52% upside potential from current levels. He views CoreWeave as a top-four market-share winner in the multibillion-dollar AI cloud market, which is expected to outgrow the traditional internet cloud market.
CoreWeave Has a Data Center Problem
CoreWeave buys advanced GPUs from Nvidia (NVDA) and rents out the computing power to major clients like OpenAI (PC:OPAIQ), Microsoft (MSFT), and Meta (META). It funds data centers with heavy debt, straining cash flows and margins. Meanwhile, the company’s capital expenditures are expanding at a faster rate than its revenue growth, adding to the concerns about an AI bubble.
CoreWeave’s core issue started when one of its prime data center providers, Core Scientific, delayed the Denton data center buildout, slated for OpenAI, due to unexpectedly heavy rain.
D.A. Davidson’s top analyst Gil Luria says that CoreWeave has one of the ugliest balance sheets in the technology sector. He has a “Sell” rating on CRWV and a price target of $36, implying 50.2% downside potential. He noted that CoreWeave’s 4% operating margins fail to cover debt interest, casting doubt on future profits. Luria dismisses the bull case of scaling up, stating that many firms start with low margins but CoreWeave is already at scale. This raises red flags despite its huge revenue backlog and GPU rental model from Nvidia.
Is CRWV Stock a Buy?
On TipRanks, CRWV stock has a Moderate Buy consensus rating based on 12 Buys, 10 Holds, and one Sell rating. The average CoreWeave price target of $132.33 implies 82.9% upside potential from current levels.
