TLDR
- BofA analyst Tal Liani reinstated CoreWeave (CRWV) at Buy with a $100 price target
- Stock trades around $81.96, implying ~22% upside to BofA’s target
- BofA sees CoreWeave positioned to capture share of the $79bn AI infrastructure-as-a-service market
- The supply-demand imbalance in AI compute is not expected to ease before 2029
- CoreWeave posted 168% revenue growth over the last twelve months
BofA Securities has reinstated coverage of CoreWeave (CRWV) with a Buy rating and a $100 price target, citing strong demand for AI compute and the company’s growing list of high-profile partners.
CoreWeave, Inc. Class A Common Stock, CRWV
Analyst Tal Liani had previously held a Neutral rating on the stock. The reinstatement marks a more optimistic stance on CoreWeave’s outlook.
The stock was trading around $81.96 at the time of the note. BofA’s $100 target implies upside of roughly 22% from that level.
The firm pointed to CoreWeave’s proprietary software built for AI workloads as a key differentiator. It also highlighted the company’s alliances with Nvidia and OpenAI as factors in its competitive position.
AI Demand Driving Infrastructure Needs
BofA said the rise of agentic AI is pushing up infrastructure requirements across the industry. CoreWeave helps customers navigate supply, capacity, and power shortages, the firm noted.
The analyst does not expect the imbalance between AI compute demand and supply to ease before 2029. That extended runway is a core part of BofA’s investment case.
BofA values CoreWeave at 21 times its calendar year 2027 estimated EV/EBIT, above the peer average of 16 times. The company’s revenue grew 168% over the last twelve months, underpinning the premium valuation.
CoreWeave currently trades at an EV/EBITDA multiple of 28.6 times on a trailing basis. InvestingPro analysis flags the stock as overvalued relative to its Fair Value estimate — a point of tension with the BofA thesis.
Recent Moves at CoreWeave
BofA is not the only firm paying attention. Oppenheimer recently initiated coverage with an Outperform rating, pointing to CoreWeave’s GPU infrastructure as a key strength.
Bernstein took the opposite view, starting coverage with an Underperform rating. The firm raised concerns about future market dynamics despite current demand-driven momentum.
On the product side, CoreWeave added Nvidia HGX B300 chips to its cloud platform, unveiled at Nvidia’s GTC conference. The chips bring higher memory and bandwidth to CoreWeave’s infrastructure stack.
CoreWeave also announced a tie-up with Cline, integrating its W&B Inference into Cline’s coding platform. The deal gives Cline access to CoreWeave’s AI infrastructure for training and inference.
In a separate move, CoreWeave is partnering with Cerebras Systems and BCE Inc. to build a 300-megawatt AI data center in Saskatchewan. Operations are expected to begin in the first half of next year.
The facility will allocate compute resources to both CoreWeave and Cerebras, expanding CoreWeave’s physical footprint in North America.
BofA acknowledged risks exist around the company’s position but maintained its positive view on CoreWeave’s ability to hold and grow market share in AI infrastructure.
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