CoreWeave: NVIDIA Partnership Strengthens Long-Term AI Growth, but Valuation and Near-Term Constraints Justify Hold Rating

Gregg Moskowitz, an analyst from Mizuho Securities, reiterated the Hold rating on CoreWeave. The associated price target was raised to $100.00.

Gregg Moskowitz has given his Hold rating due to a combination of factors tied to CoreWeave’s strong strategic position but balanced risk/reward profile. He acknowledges that the expanded partnership with NVIDIA, including the planned acceleration to 5GW of capacity and a $2B equity infusion, strengthens CoreWeave’s long-term growth prospects and reinforces its role as a key AI cloud infrastructure provider. He also views the potential monetization of CoreWeave’s software stack with other cloud providers and enterprises as a meaningful, higher-margin opportunity over time. However, he notes that recent operational setbacks and ongoing supply and timing constraints temper expectations for substantial upside in revenue over the next several quarters.

At the same time, Moskowitz highlights that CoreWeave’s valuation already reflects a significant premium to its AI infrastructure peers on standard EV/EBIT multiples, even though it still appears attractive when adjusted for growth. The need for substantially higher capital spending and funding, especially as the company ramps more power-intensive GPUs, adds another layer of execution and financing risk. While today’s announcement boosts confidence in the company’s ability to secure the resources needed to support its long-term build-out, the combination of near-term capacity challenges and a full valuation leads him to see the shares as fairly valued at current levels. As a result, he maintains a Neutral (Hold) stance while modestly raising his price target to $100 to reflect the improved long-term outlook.

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.