Shares of CoreWeave (CRW), the AI-focused cloud services company that debuted on Wall Street just one month ago, got a much-needed boost today as Wall Street analysts released their first formal outlook on the stock.
The company’s initial public offering (IPO) last month was met with lukewarm investor interest, leading CoreWeave to cut both its offering price and share allocation in the days leading up to its debut. Since then, the stock has struggled to gain its footing, falling more than 40% from its post-IPO highs.
On Tuesday, the tide turned, at least for now as Wall Street analysts hold a bullish outlook for CoreWeave stock.
Of the eleven analysts covering CoreWeave, 73% initiated coverage with either a "strong buy" or "buy" recommendation, while the remaining 27% rated the stock a "hold."
The average target price for CRW stock is now $46.30, representing significant upside from its current price of $37.80.
The new analyst coverage couldn’t have come at a better time for CoreWeave, which has been emblematic of the growing investor anxiety around AI-related stocks.
Despite the company's position in the high-growth AI infrastructure space, its disappointing IPO was seen as a red flag for broader sentiment in the sector.
As AI stocks soared throughout 2023 and early 2024, concerns of overvaluation and bubble-like conditions have steadily grown. CoreWeave’s bumpy market debut served as a reminder that not all AI companies are immune to this revaluation process.
The next two weeks could be pivotal for CoreWeave and the broader AI industry. Several AI leaders, including NVIDIA, Microsoft, and Alphabet, are set to report earnings, providing key insights into whether the AI growth narrative can continue to support current valuations—or if a bubble is in fact beginning to burst. For CoreWeave, strong earnings from these peers could help shore up confidence in its business model and future growth trajectory.
Given the short availability of price data on CoreWeave stock it is impossible to generate an outlook from any trends. Investors should maintain a vigil on the charts of NVIDIA as a “tell” as to when it may be timely to begin buying shares. Until then, a cautious outlook is warranted.
For now, today’s analyst coverage is a win for the fledgling stock, but the broader AI market sentiment will likely dictate where CoreWeave heads next.
