CoreWeave (CRWV, Financial), a US-based AI infrastructure startup backed by NVIDIA (NVDA), recently drew favorable reviews from Wall Street firms despite its underwhelming IPO performance. CoreWeave specializes in providing high-performance GPU resources and data center services, serving major AI clients like Microsoft (MSFT) and OpenAI.
Following the end of its IPO quiet period, five major investment banks, including Goldman Sachs (GS), Morgan Stanley (MS), JPMorgan (JPM), Barclays (BCS), and Jefferies, released reports expressing optimism about CoreWeave's stock. The target price consensus ranges from $43 to $54, though the stock currently trades below its IPO price of $40 at $36.25.
Analysts appreciate CoreWeave's leading position in AI computing infrastructure. JPMorgan highlights its advantage in next-gen GPU deployment, while Barclays warns of its revenue concentration risk, noting 77% of its revenue last year came from just two major clients, primarily Microsoft.
While CoreWeave has secured a significant $11.9 billion five-year partnership with OpenAI, potential dependency risks and its high debt, capital expenditure model pose volatility challenges. JPMorgan cautions that only investors with a high-risk tolerance should consider this stock due to its potential for volatility.
