Goldman Sachs upgrades CoreWeave to Buy, cuts price target to $106
What happened
Goldman Sachs analyst Gabriela Borges upgraded CoreWeave to Buy from Neutral in a note published at 7:36 a.m. ET on Monday, October 19, while cutting her price target to $106 from $139. The new target still implies about 73% upside from Friday's $61.39 close. Borges argued investors are underestimating the magnitude of upward revisions to returns CoreWeave can earn on its computing assets, expecting annual recurring revenue per megawatt to rise over the next 24 months on tight AI compute supply and CoreWeave's cost and performance advantages. Shares gapped up 7.5% in premarket trading to $65.95 before fading to around $61.72 in morning trade.
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Start your free 14-day trialWho’s affected
- CoreWeave (CRWV) — direct subject; upgrade argues its contract economics and returns are better than neocloud peers
- Other neoclouds (Nebius, IREN, Hut 8, Cipher, Applied Digital) — sentiment read-through; a credible Buy on the sector's poster child eases contagion fears
- Nvidia (NVDA) / AI infrastructure — CoreWeave is a major buyer of Nvidia GPUs; stabilizing its funding outlook supports the AI capex chain