CoreWeave Inc. (NASDAQ:CRWV) saw its stock climb 2.5% in premarket trading after two Wall Street firms upgraded the cloud-computing company, highlighting robust AI-related demand and ongoing supply constraints in the sector.
Melius analyst Ben Reitzer raised CoreWeave’s rating from Hold to Buy, setting a price target of $165.00. Meanwhile, Wells Fargo analyst Michael Turrin upgraded his rating from Equal Weight to Overweight and boosted his price target to $170.00 from $105.00.
The upgrades reflect CoreWeave’s favorable position amid the current AI build cycle and expected industry shortages through 2026. Turrin noted that while many software companies are still waiting for AI monetization to materialize, CoreWeave is already benefiting from strong demand.
“Supply constraints continue, with hyperscaler shortages continuing through (at least) early-2026. See potential for CRWV to pick up market share in the interim,” said Turrin, who also raised his revenue estimates for fiscal 2026 and 2027 by 5% and 9%, respectively.
Turrin further highlighted NVIDIA’s (NASDAQ:NVDA) recent agreement to purchase all of CoreWeave’s unused capacity through 2032, effectively giving the company “a blank check to build out new capacity for 6+ years.”
Both analysts referenced CoreWeave’s growing business relationships with major technology firms, with Wells Fargo noting that Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOGL) have expanded their engagements with the company. This includes roughly $0.5 billion in accounts receivable from a third unnamed client, believed to be Google.
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