Wells Fargo Upgrades CoreWeave to Overweight, Raises PT to $170 from $105

Wells Fargo Upgrades CoreWeave to Overweight, Raises PT to $170 from $105

Wells Fargo has upgraded CoreWeave (NASDAQ:CRWV) to an Overweight rating and raised its price target to $170 from $105, reflecting the investment bank's optimism about the company's growth prospects and market position. The upgrade comes as CoreWeave continues to benefit from surging demand for AI infrastructure, particularly in the GPUaaS (Graphics Processing Unit as a Service) segment.

CoreWeave's stock has been on a strong upward trajectory, with a more than 200% increase since its IPO earlier this year. The company's revenues grew by over 200% to $1.2 billion, driven by a significant increase in demand for AI compute capacity. However, the company's operating income declined, primarily due to higher costs related to research and development, depreciation, and amortization, as well as increased sales and marketing expenses CoreWeave Stock: A Strong Buy In AI, Here's Why^[1].

Wells Fargo analysts highlighted the company's strong backlog and growth opportunities, noting that CoreWeave currently has a $30.1 billion remaining performance obligation, providing substantial growth opportunities ahead. The company's acquisition of Core Scientific in a $9 billion all-stock transaction is expected to give it its first fully owned data centers, which could boost operational efficiency over the longer term CoreWeave Stock: A Strong Buy In AI, Here's Why^[1].

Despite the recent decline in operating income, CoreWeave's adjusted EBITDA margins remained strong at 62%, indicating operational strength. The company's median EV/EBITDA multiple is substantially higher than that of its peers, but Wells Fargo believes that the company's growth prospects justify this valuation CoreWeave Stock: A Strong Buy In AI, Here's Why^[1].

The upgrade comes as CoreWeave continues to benefit from the growing demand for hyperscalers, with the GPUaaS market projected to grow to $300 billion by 2030 from $3 to $4 billion in 2025 Citizens upgrades this cloud computing stock on hyperscale outsourcing optimism^[2]. The company's recent order worth at least $6.3 billion from Nvidia, the dominant maker of semiconductors that run artificial intelligence, further underscores the company's strong position in the market.

While a majority of analysts are less than enthusiastic on CoreWeave, with 15 of 26 rating it no more than a hold, Wells Fargo's upgrade reflects the investment bank's confidence in the company's ability to capitalize on the growing demand for AI infrastructure Citizens upgrades this cloud computing stock on hyperscale outsourcing optimism^[2].

References
CoreWeave Stock: A Strong Buy In AI, Here's Why^[1] https://seekingalpha.com/article/4824894-coreweave-stock-a-strong-buy-in-ai-heres-why
Citizens upgrades this cloud computing stock on hyperscale outsourcing optimism^[2] https://www.cnbc.com/2025/09/16/citizens-upgrades-this-cloud-computing-stock-on-hyperscale-outsourcing-optimism.html