CoreWeave Shares Surge 16.71% in Two Days, Trading Volume Ranks Eighth in Market Activity

CoreWeave (CRWV) shares surged 8.38% on Tuesday, marking the second consecutive day of gains, with a total increase of 16.71% over the past two days. The company's trading volume reached 52.74 billion, ranking eighth in the day's stock market activity.

Bank of America analyst Brad Sills downgraded CoreWeave stock to Neutral from his previous Buy rating, citing its high valuation. Sills noted that CoreWeave is trading at 27 times its projected 2027 earnings and highlighted its significant debt. Despite the downgrade, Sills raised his price outlook on the stock to $185 from $171.93, the highest among analysts tracked by Bloomberg.

Sills cited capital expenditures on AI, which he said are "still very healthy" while arguing that the "growth rate is peaking." He noted that AI capital expenditures are set to grow 4% in 2027 to $206 billion, but that growth is much less than the 65% jump in AI capex in 2025. Sills also mentioned CoreWeave's expanded deal with OpenAI, which secured a $4 billion deal with the ChatGPT maker in addition to its previously reported $11.9 billion commitment from the AI startup.

CoreWeave is one of the largest holders of Nvidia's graphics processing units and rents its data-center capacity to Big Tech firms such as Microsoft and Meta, as their own stores of GPUs haven't been sufficient to power their AI ambitions. CoreWeave uses its debt, borrowed at high interest rates against its store of Nvidia GPUs as collateral, to buy more Nvidia chips. Nvidia is also a major investor in and customer of the AI cloud firm.

Jefferies analyst Brent Thill also gave a nod of approval to CoreWeave, listing the company among the investing firm's top AI stocks and reiterating his $180 price target on shares. Thill wrote, "CRWV is the fastest growing vendor in our AI coverage ... and we believe their infrastructure has more durability than most think."