Key Takeaways
- Bank of America’s Tal Liani upgraded CoreWeave (CRWV) to Buy rating with $100 price target
- Shares currently trading near $81.96, suggesting approximately 22% potential upside
- BofA projects CoreWeave will capture significant portion of $79 billion AI infrastructure-as-a-service sector
- AI compute supply-demand gap projected to persist through 2029
- Company delivered 168% year-over-year revenue expansion in trailing twelve months
Bank of America Securities has resumed coverage of CoreWeave (CRWV) with a Buy recommendation and $100 per share price objective, emphasizing robust AI computing demand and the firm’s expanding roster of strategic partnerships.
CoreWeave, Inc. Class A Common Stock, CRWV
Tal Liani, the covering analyst, previously maintained a Neutral stance on the shares. This renewed coverage signals increased confidence in CoreWeave’s business trajectory.
Shares were changing hands near $81.96 when the research note was published. The firm’s $100 price objective represents potential appreciation of approximately 22% from current levels.
BofA emphasized CoreWeave’s specialized AI workload software as a critical competitive advantage. The analyst also noted strategic relationships with Nvidia and OpenAI as strengthening the company’s market positioning.
Agentic AI Fueling Infrastructure Expansion
According to Bank of America, the emergence of agentic AI systems is accelerating infrastructure requirements industry-wide. CoreWeave assists clients in managing challenges related to supply availability, capacity constraints, and power limitations, the research indicates.
Liani’s analysis suggests the mismatch between AI computing demand and available supply won’t resolve until 2029 at the earliest. This prolonged opportunity window forms a central pillar of the investment thesis.
The bank values CoreWeave at 21x its projected 2027 calendar year EV/EBIT, exceeding the peer group average of 16x. The company’s 168% trailing twelve-month revenue growth supports this valuation premium.
CoreWeave presently commands an EV/EBITDA multiple of 28.6x on a trailing basis. InvestingPro’s assessment suggests the stock appears overvalued compared to Fair Value calculations — creating some tension with BofA’s bullish outlook.
Latest Corporate Developments
Bank of America isn’t alone in monitoring CoreWeave’s progress. Oppenheimer recently launched coverage with an Outperform rating, emphasizing the company’s GPU infrastructure capabilities.
Bernstein adopted a contrasting position, initiating coverage with an Underperform rating. That firm expressed skepticism about long-term market conditions despite acknowledging current demand strength.
On the technology front, CoreWeave integrated Nvidia HGX B300 chips into its cloud offering, announced during Nvidia’s GTC conference. These processors deliver enhanced memory capacity and bandwidth to CoreWeave’s infrastructure suite.
The company also forged a collaboration with Cline, embedding its W&B Inference technology into Cline’s coding environment. This arrangement provides Cline with access to CoreWeave’s AI infrastructure for both training and inference workloads.
In another strategic initiative, CoreWeave is collaborating with Cerebras Systems and BCE Inc. to construct a 300-megawatt AI data center in Saskatchewan. The facility is scheduled to commence operations during the first half of next year.
The installation will distribute computing resources between CoreWeave and Cerebras, broadening CoreWeave’s infrastructure presence across North America.
While acknowledging potential risks surrounding the company’s competitive position, BofA maintained its optimistic assessment of CoreWeave’s capacity to defend and expand its AI infrastructure market share.
