Demand for AI infrastructure will drive more gains in this stock, says Bank of America
CoreWeave is poised to gain ground thanks to strong demand for artificial intelligence infrastructure, according to Bank of America Global Research. The bank reinstated coverage of CoreWeave with a buy rating, up from hold. It set a $100 price objective for the stock, suggesting 22% upside from Monday’s close. “CoreWeave is well positioned to capture [a] share of the $79bn AI infrastructure as a service (Iaas) market,” Bank of America analyst Tal Liani said in the note. “While risks exist, we believe the demand trajectory is solid in the foreseeable future.” “We are constructive on CoreWeave in the medium term, as we think that over the next 12 months the company should benefit from a steady cadence of GPU deliveries, new data‑center energization, incremental reserved‑capacity signings, and continued refinancings that help support execution of the build‑out,” Liani wrote. CRWV YTD mountain CRWV year to date Four hyperscalers — Alphabet, Microsoft, Meta, and Amazon — have committed nearly $700 billion in combined capex to build new AI data centers. However, CoreWeave has a proprietary software that is optimized for AI workloads, giving it an edge on competitors to capitalize on that boom, according to BofA. The cloud-computing firm also boasts “strategic alliances” with Nvidia and OpenAI, which should boost its bid to capture market share. Those attributes have led Bank of America analysts to adopt a constructive outlook on CoreWeave over the medium and longer terms. “We think that over the next 12 months the company should benefit from a steady cadence of GPU deliveries, new data‑center energization, incremental reserved‑capacity signings, and continued refinancings that help support execution of the build‑out,” Liani wrote. “Over the longer term (12-24 months), we expect improving ROIC on newer cohorts, more evidence of pricing durability at renewal, and signs of platform sustainability.” Bank of America’s upgrade puts it in line with consensus on Wall Street. Of the 35 analysts covering the stock, 20 have a buy or strong buy rating on CoreWeave, LSEG data shows. CoreWeave has gained more than 14% this year, outpacing a broader market that’s struggling amid geopolitical uncertainty.
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