Cantor Fitzgerald sees CoreWeave as a big artificial intelligence beneficiary in the coming years. The investment firm initiated coverage of the cloud computing company at an overweight rating and $116 per share price target, which implies upside of 27%. Analyst Thomas Blakely noted CoreWeave’s compelling profile. The company’s target market opportunity is around $399 billion, and CoreWeave has expanded at an compounded annual growth rate of 38% since 2023. He also emphasized the company’s focus on building out its AI model training and infrastructure as a major catalyst for the stock. “Our rating is driven by our view of a healthy balance between a significant AI market opportunity and dynamic execution risks,” he wrote. “We believe CoreWeave should benefit from secular growth trends in AI, specifically large language model (LLM) training and inference-based usage, as an enabling software-driven AI-focused hyperscaler, comfort in near-term demand/supply imbalance, and competitive differentiation.” Meanwhile, CoreWeave’s July 7 announcement that it would acquire Core Scientific in a $9 billion deal would expand the company’s gross power and national data center footprint, further boosting the stock in the near term. This is because access to power has been “crucial in deploying AI and CoreWeave’s services,” Blakely said. “We view the closing of the proposed CORZ transaction and the potential conversion of bitcoin-related valuable power to HPC as another near-term catalyst for CRWV shares,” he added. The analyst also emphasized CoreWeave’s access to capital markets to finance some of its purchases, which is key to the company’s growth. “CoreWeave has a track record of lowering its debt costs in recent years and this past quarter, indicating to us that the company has healthy access to capital markets, particularly the debt market, which is its main funding resource,” he wrote. “We highlight for investors that data center peers have had recent access to debt markets as well as pursuing relatively large equity raises (e.g., Vantage, Crusoe), indicating further health in terms of funding markets related to AI/GPU-related infrastructure.” CRWV YTD mountain CRWV YTD chart Since going public in March, CoreWeave stock has surged 128%.
