Evercore ISI’s top analyst Amit Daryanani called Nvidia’s (NVDA) additional $2 billion investment in CoreWeave (CRWV) a game-changing deal that unlocks new opportunities and revenue streams. He believes that this investment, made at a slight discount, underscores Nvidia’s commitment and confidence in CoreWeave’s potential.
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Nvidia was already the fourth-largest shareholder with about 6% ownership prior to the deal and could expand to about 12% to 13% post-deal, making it the second-largest shareholder. CRWV shares have surged more than 16% since the news broke.
Daryanani reiterated his Buy rating and $160 price target on CRWV, implying a nearly 47% upside potential from current levels. He is a five-star analyst on TipRanks, ranking #160 out of 12,040 analysts tracked. He has a 64% success rate and an average return per rating of 20.60%.
CoreWeave Is Set to Earn High-Margin Revenue
Daryanani points to software monetization as a major catalyst, where CoreWeave will license its high-margin software stack, including SUNK and Mission Control, to Nvidia and other partners, solidifying its status as a premium solution provider. SUNK is a GPU (graphics processing unit) orchestration platform and Mission Control is a cluster management tool.
CoreWeave also plans robust expansion into CPUs (central processing units) and storage alongside its core GPU offerings, targeting over $100 million in annual recurring revenue (ARR) by the end of Q3. With Nvidia’s backing, CoreWeave can secure key data center resources and sharpen its edge against hyperscalers like Amazon’s (AMZN) AWS or Google (GOOGL) Cloud. That said, risks like heavy customer concentration and potential GPU obsolescence could present hurdles.
Is CoreWeave Stock a Good Buy?
On TipRanks, CoreWeave stock has a Moderate Buy consensus rating based on 14 Buys and 12 Hold ratings. The average CoreWeave price target of $126.77 implies 14.7% upside potential from current levels. Over the past year, CRWV shares have skyrocketed over 193%.
