CoreWeave, Inc. Class A (CRWV) has received a new Buy rating, initiated by J.P. Morgan analyst, Mark Murphy.
Mark Murphy has given his Buy rating due to a combination of factors that highlight CoreWeave, Inc.’s potential for significant growth and market leadership in the AI sector. CoreWeave is experiencing rapid revenue growth and has accumulated a substantial backlog of high-quality revenue performance obligations, which are supported by a positive operating margin. The company’s strategic partnership with NVIDIA positions it as a frontrunner in deploying next-generation GPUs, making it a preferred choice for leading AI clients such as Microsoft, OpenAI, and Meta.
Despite potential risks such as customer concentration and the possibility of a recalibration in GPU supply-demand dynamics, Murphy believes that the market may be undervaluing CoreWeave’s growth prospects. The company’s ability to leverage its extensive GPU fleet and its innovative approach to AI infrastructure provides a competitive edge. Murphy’s valuation of CoreWeave at an 18x EV/CY26E PF EBIT multiple reflects confidence in its future revenue growth and the expansive opportunities within the AI market, justifying the Buy rating.
In another report released today, Barclays also initiated coverage with a Buy rating on the stock with a $48.00 price target.