Key Takeaways
- Bank of America’s Tal Liani upgrades CoreWeave (CRWV) to Buy from Neutral with $100 price target
- Current trading price of $81.96 suggests approximately 22% potential upside
- BofA projects CoreWeave will gain market share in the $79 billion AI infrastructure-as-a-service sector
- AI compute supply-demand gap expected to persist through 2029
- Company delivered 168% revenue expansion in the past twelve months
Bank of America Securities has upgraded its stance on CoreWeave (CRWV), issuing a Buy recommendation with a $100 price objective, emphasizing robust AI computing requirements 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 position on the shares. This upgrade reflects increased confidence in CoreWeave’s growth trajectory.
With shares changing hands near $81.96 when the research note was published, Bank of America’s price objective suggests potential appreciation of approximately 22%.
The investment bank emphasized CoreWeave’s specialized software designed specifically for artificial intelligence workloads as a competitive advantage. Additionally, strategic relationships with Nvidia and OpenAI strengthen the company’s market position, according to the analysis.
Surging AI Adoption Fuels Infrastructure Investment
Bank of America indicates that the emergence of agentic artificial intelligence is accelerating infrastructure demands throughout the sector. CoreWeave assists clients in addressing supply constraints, capacity limitations, and power availability challenges, the firm observed.
The analyst anticipates that the mismatch between AI computing demand and available supply will continue through at least 2029. This extended growth period forms a fundamental element of BofA’s bullish investment thesis.
BofA applies a 21x calendar year 2027 EV/EBIT multiple to CoreWeave, which exceeds the peer group average of 16x. The company’s 168% year-over-year revenue growth supports this premium valuation methodology.
CoreWeave currently commands an EV/EBITDA multiple of 28.6x on a trailing basis. InvestingPro’s assessment suggests the stock appears overvalued compared to its Fair Value calculation — creating some friction with Bank of America’s optimistic outlook.
Latest Developments at CoreWeave
Bank of America isn’t alone in examining CoreWeave closely. Oppenheimer recently launched coverage with an Outperform rating, citing the company’s GPU infrastructure capabilities as a primary advantage.
Conversely, Bernstein adopted a more cautious approach, initiating coverage with an Underperform rating. That firm expressed reservations about longer-term market conditions despite acknowledging near-term demand strength.
On the technology front, CoreWeave integrated Nvidia HGX B300 processors into its cloud infrastructure, announced during Nvidia’s GTC conference. These chips deliver enhanced memory capacity and bandwidth to CoreWeave’s service offerings.
CoreWeave also revealed a collaboration with Cline, embedding its W&B Inference capabilities into Cline’s development platform. This partnership provides Cline with access to CoreWeave’s AI infrastructure for model training and inference operations.
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 the coming year.
This installation will distribute computing resources between CoreWeave and Cerebras, extending CoreWeave’s data center presence across North America.
Bank of America recognized potential headwinds facing the company but reaffirmed its optimistic outlook on CoreWeave’s capacity to maintain and expand its position in the AI infrastructure marketplace.
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