Wells Fargo & Co has upgraded CoreWeave (CRWV.US) to “Overweight” from “Market Perform” and raised its price target to $170 from $105.
According to Zhitong Finance APP, Wells Fargo & Co upgraded CoreWeave (CRWV.US) from “Market Perform” to “Overweight,” and raised its target price from $105 to $170, noting that “the demand signals are becoming increasingly strong and cannot be ignored.” CoreWeave’s share price was essentially flat on Tuesday.
Analysts led by Michael Turrin stated: “While other software companies are still struggling to monetize artificial intelligence, CRWV is now benefiting both from the current surge in construction cycles and ongoing advantages stemming from industry supply shortages that are unlikely to ease through 2026.”
The analysts noted that while the long-term outlook for the AI market remains uncertain, they chose to upgrade the stock due to CoreWeave’s demonstrated ability to expand into the largest consumer base of AI computing power, which may allow it to gain a larger market share over time.
Key factors contributing to the analysts’ optimism include: statements from hyperscale firms confirming stronger-than-expected AI demand; significant order volumes driven by recent AI labs across the industry; major adjustments to hyperscale capital expenditures; and updated unit economics assumptions by Wells Fargo & Co—higher demand driving GPU pricing per hour from $2 to $2.5, with NVIDIA (NVDA) underwriting all unused compute capacity via contractual commitments, potentially on favorable terms for CoreWeave.
Other supporting factors include upside potential in margin estimates (its vertically integrated technology stack is gradually taking shape, and financing costs are better than expected); continued expansion among marquee clients such as Microsoft (MSFT.US), OpenAI, and Google (GOOGL.US); and the anticipated end of the company’s IPO lock-up period, which is expected to reduce future stock price volatility.