CoreWeave–NVIDIA Deepening Ties: Compelling Long-Term AI Upside Tempered by Execution Risks and Valuation, Justifying a Hold Rating

Analyst Keith Weiss of Morgan Stanley maintained a Hold rating on CoreWeave, retaining the price target of $99.00.

Keith Weiss has given his Hold rating due to a combination of factors tied to both opportunity and risk in CoreWeave’s evolving relationship with NVIDIA. He acknowledges that the expanded partnership should significantly accelerate CoreWeave’s build-out of AI infrastructure and deepen its technical differentiation versus other next‑generation cloud providers. At the same time, he appears mindful that much of this infrastructure growth is a longer-term ambition and that only a portion of the >5 GW target is clearly visible today, which tempers the near‑term upside case. The $2 billion equity investment from NVIDIA, while a strong vote of confidence that bolsters the balance sheet, is not structured as an additional credit backstop, which limits its impact on CoreWeave’s risk profile.

Keith Weiss also sees substantial potential in CoreWeave’s software layer, particularly as the partnership allows that software to be more fully “productized” and distributed via NVIDIA to global cloud service providers and enterprise customers. However, management’s own emphasis on being conservative about near‑term software revenue contribution, given how early-stage this go‑to‑market arrangement is, suggests the financial benefits will ramp gradually rather than immediately. In his view, the combination of strong strategic positioning and growing proof points of AI demand is balanced by execution risk, timing uncertainty around software monetization, and the stock’s current valuation after recent appreciation. As a result, he concludes that while the story is attractive and strengthening, risk‑reward at present levels is best reflected in a Hold rather than a more aggressive rating.

Based on the recent corporate insider activity of 197 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRWV in relation to earlier this year.