CoreWeave (NASDAQ:CRWV) stock has burst onto the scene as one of the most intriguing new ways to ride the AI wave. Fresh off its late-March IPO, the company has carved out a powerful niche with its vast supply of GPUs for hire – the very backbone of today’s AI revolution.
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Founded as a cryptocurrency mining operation, CoreWeave subsequently pivoted into the AI space, where its infrastructure advantage quickly set it apart. Today, it operates 33 data centers across the U.S. and western Europe and counts OpenAI, Meta, and IBM among its high-profile clients.
Nvidia’s own 5% stake only reinforces the idea that CoreWeave has become a critical piece of the AI ecosystem. The question, of course, is whether retail investors should follow Nvidia’s lead.
Cantor’s Thomas Blakely argues they should. The analyst believes CoreWeave isn’t just capitalizing on the AI boom, but is building the infrastructure and partnerships that could give it durable advantages. According to his checks with customers, competitors, and industry experts, the company has developed a “wide and deep moat” that goes well beyond GPU rentals.
In fact, Blakely points out that CoreWeave’s focus on optimizing GPUs has helped it to forge a “strategic partnership” with many of its large customers.
“CoreWeave has proprietary tools and an integrated platform that leverages the use of open-source (K8s resource management) and cutting-edge data access technologies (LOTA), helping customers save time and money, particularly in AI model training,” the analyst adds.
The demand for CoreWeave’s services is certainly growing, notes the analyst, citing a report that projects AI-optimized Infrastructure-as-a-Service market to expand by 71% CAGR to reach some $109 billion by 2029. Blakely expects CoreWeave to be front-and-center, capturing almost a third of this market in the years ahead.
On that basis, the analyst believes now is the time to load up on CRWV shares, issuing a Buy rating alongside a $116 price target that suggests around 20% upside from current levels. (To watch Thomas Blakey’s track record, click here)
Overall, the 23 recent analyst reviews on CRWV break down to 9 Buys, 12 Holds, and 2 Sells, for a Moderate Buy consensus rating. The shares are priced at $87.48 and their $123.45 average target price suggests an appreciation of 41% by this time next year. (See CRWV stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.