Shares of CoreWeave (CRWV), the artificial intelligence (AI) focused cloud infrastructure provider, have retreated more than 50% from June highs, reflecting investor concerns and post-initial-public-offering volatility. Undeterred, H.C. Wainwright analyst Kevin Dede just upgraded CRWV stock from “Neutral” to “Buy”, assigning a new price target of $180.
Dede argues that the selloff has pushed CoreWeave’s valuation deeply below fundamentals, offering a compelling entry point. This bullish outlook is also supported by CoreWeave raising its fiscal 2025 revenue guidance, underscoring the company’s robust demand in AI and cloud infrastructure. Let’s get into further details to better understand the firm’s prospects.
CoreWeave, a prominent AI-focused cloud infrastructure company, is headquartered in Livingston, New Jersey. Founded in 2017, the company evolved from cryptocurrency mining into a leading provider of GPU-optimized cloud computing for AI training and inference workloads. Its market capitalization currently stands at $45.9 billion, underscoring its growing presence.
Since its initial public offering (IPO) in March 2025, CRWV stock has garnered investors’ attention as they pile into AI infrastructure plays. This surge has been driven by explosive AI demand and contracts with heavyweight clients such as OpenAI, Microsoft (MSFT) , and Nvidia (NVDA). CoreWeave shares surged from the company’s IPO at $40 per share to hit an all-time high of $187 on June 20, 2025.
However, volatility followed. CoreWeave stock has tumbled some 50% from the high recorded in June. Over the past month, the stock has slumped 28% driven by several headwinds, including second-quarter losses exceeding expectations, the expiration of its IPO lock-up, and uncertainties surrounding its Core Scientific acquisition.
CRWV stock experienced a sharp 20.8% drop on Aug. 13, the day after CoreWeave delivered a mixed Q2 report, showing strong revenue but significantly wider-than-expected losses.
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CRWV stock currently trades at 13 times forward sales, which is a premium compared to its peers.
CoreWeave released its Q2 2025 earnings report on Aug. 12, revealing robust execution amid rapid AI demand growth. The company posted a remarkable 206% year-over-year (YOY) revenue surge to $1.2 billion, significantly exceeding expectations. Revenue backlog stood at $30.1 billion as of June 30, 2025.
However, soaring expenses led to dampened profitability, resulting in a net loss of $290.5 million or $0.60 per share, compared to the prior-year quarter value of -$323 million or -$1.62 per share. The company’s loss per share for the quarter was far worse than the anticipated loss of approximately $0.23 per share. Adjusted net loss for Q2 came in at $130.8 million, compared to a $5.1 million loss in the year-ago quarter.
On a brighter note, adjusted EBITDA rose significantly to $753.2 million (a 62% margin), while adjusted operating income rose to $199.8 million (a 16% margin).
Reflecting confidence in continued demand, management raised its full-year revenue guidance to a range of $5.15 billion to $5.35 billion and projected Q3 revenue of $1.26 billion to $1.30 billion, with Q3 adjusted operating income between $160 million and $190 million.
Despite the top-line beat and optimistic outlook, markets reacted cautiously as shares dropped, reflecting investor concern over widening losses.
Meanwhile, analysts anticipate loss per share to increase 100% YOY to $2.14 in fiscal 2025, before improving by 74% to reach $0.56 in fiscal 2026.
Recently, analyst sentiment around CoreWeave has been mixed, reflecting both optimism over long-term AI infrastructure demand and caution amid valuation and operational risks. On the bullish side, H.C. Wainwright analyst Kevin Dede upgraded CRWV stock from “Neutral” to “Buy” with a generous $180 price target.
However, not all analysts are on the bullish side. HSBC maintained a “Reduce” rating and $32 target on CoreWeave, citing concerns over margin pressure and long-term cost challenges. Also, while MoffettNathanson raised its price target to $65 from $56, it maintained a “Neutral” rating. Despite the price hike, the firm remains cautious due to concerns over rising competitive pressures that could impact project returns.
CoreWeave stock has a consensus “Hold” rating overall. Out of 22 analysts covering the tech stock, seven recommend a “Strong Buy,” 14 analysts stay cautious with a “Hold” rating, and one gives a “Strong Sell” rating.
CRWV stock’s average analyst price target of $128.10 indicates potential upside of 36% from current levels. The Street-high target price of $200 suggests 113% upside ahead.
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On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
