Analysts move to the sidelines on CoreWeave stock after big surge since IPO
Analysts on Wall Street are getting a bit more cautious on CoreWeave stock. Analysts at Mizuho Securities and Stifel downgraded the artificial intelligence cloud computing stock to hold in the last 24 hours. Citigroup added to the dampening sentiment with a downside catalyst watch on the stock in a Tuesday note. Stifel’s $115 per share price target calls for about 28% downside from Monday’s $159.70 close. Mizuho’s $150 per share target implies a slide of about 6%, while Citi’s $160 forecast is roughly 0.1% above CoreWeave’s Monday close. CoreWeave stock has surged more than 266% over the past three months. Its initial public offering earlier this year was the biggest technology IPO since 2021 . CoreWeave is viewed as a proxy for Nvidia given given the close partnership between the two companies . The stock has also become something of a favorite among retail traders. On Monday , CoreWeave announced plans to acquire data center infrastructure company Core Scientific in a roughly $9 billion transaction. The move raised some eyebrows since it is using all stock in the deal. CRWV YTD mountain CoreWeave stock in 2025. While Mizuho analyst Gregg Moskowitz is optimistic on CoreWeave over the long-term, he said both the stock’s outsized run since going public and a balancing risk-to-reward skew as reasons for his downgrade of the stock. “CRWV has very high customer concentration, and its competitive positioning for inference workloads is somewhat unclear due in part to greater potential for custom silicon use,” the analyst said. Stifel said that the news of the acquisition, while an overall positive development for the company, now means CoreWeave stock could cool off. “The company’s recent announced intent to acquire Core Scientific could further accelerate the strategy to scale deployments of AI and high-performance compute infrastructure,” analyst Ruben Roy said. “However, we believe that the re-positioning of the company as a vertical data center provider changes the valuation structure. As such, we view shares as fairly valued.” Citi analyst Tyler Radke said that the stock could face near-term downside as investors potentially opt to snag Core Scientific stock at a significant markdown. “We feel near-term shares face downside risk as CRWV bulls have the option to buy CORZ at a discount today (30% off from where proposed M & A price is),” the analyst said. “[W]e’d like to see more customer diversification and progress on profitability.”
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