CoreWeave’s long-term story remains intact despite weak quarterly outlook
CoreWeave recently fell after issuing a weak quarterly outlook. However, long-term analysts believe its story remains intact due to its strong demand visibility.
The company has a $100 billion backlog and is among the top beneficiaries of the $700 billion AI capex wave. It sells high-performance GPU cloud infrastructure used to train and run artificial intelligence models.
Hyperscalers like Microsoft, Amazon, Alphabet, and Meta Platforms are consistently flagging capacity constraints, driving Coreweave’s model. The company’s backlog is rising from $66.8 billion toward potentially about $90 billion.
Wells Fargo kept its Overweight rating and increased the price target on the stock to $155 from $135, while Jefferies maintained its Buy rating and $160 price target.