CoreWeave (CRWV) is rapidly emerging as a name worth watching in the artificial intelligence arena. Born as a GPU-powered cloud startup, CoreWeave now delivers specialized infrastructure for AI, ML, and visual effects, riding the surge in demand for high-performance computing.

Since its public debut in March, the Nvidia (NVDA)-backed company has captured serious investor attention, becoming one of the fastest-rising stocks in the AI niche. But with rapid growth comes scrutiny.

Bank of America recently downgraded CRWV stock from “Buy” to “Neutral,” flagging concerns about its sky-high valuation after shares’ stellar ascent in just a few months. Yet in an intriguing twist, analyst Brad Sills simultaneously boosted his price target from $76 to a Street-high of $185, pointing to robust demand and CoreWeave’s strong execution in the AI space.

Momentum is high, but valuation pressure looms. Hovering just shy of the mark, can the stock hit the target again in 2025?

About CoreWeave Stock

CoreWeave (CRWV) delivers high-performance cloud infrastructure built for AI. With a market cap of $82.8 billion, it powers workloads through GPU- and CPU-optimized compute, storage, and software services. Backed by Nvidia and tied to major names like Microsoft (MSFT) and OpenAI, CoreWeave runs 250,000 Nvidia GPUs across over 30 data centers, blending flexible rentals with multi-year contracts for steady, scalable AI deployment.

Shares of CoreWeave have been on a breathtaking ascent, fueled by surging demand for AI infrastructure and robust financial performance. Since its IPO at $40 per share, the stock has skyrocketed substantially recently, touching an all-time high of $187 on June 20 before trimming some of its gains. The stock is up by 55.3% over the past month, leading some to compare it to a meme stock.

CRWV stock’s meteoric rise has captivated Wall Street, but priced at 39.7 times sales, its valuation stretches high - trading at a premium price tag compared to the sector peers.

CoreWeave Delivers Mixed Performance in Q1

CoreWeave delivered a blockbuster Q1 earnings report on May 14, generating $981.6 million in revenue, up by an astonishing 420% year over year and surpassing Wall Street expectations. Adjusted operating income climbed to $162.6 million or a 17% margin, compared to $25 million a year ago. The company’s revenue backlog stood at $25.9 billion, buoyed by major deals, including an $11.2 billion contract with OpenAI, which provided strong visibility into future revenue.

However, alongside this impressive growth came mounting losses. CoreWeave posted an adjusted net loss of $149.6 million, compared to $23.6 million in the year-ago quarter.

Notably, management forecasts Q2 revenue between $1.06 billion and $1.1 billion, while adjusted operating income guidance sits between $140 and $170 million. For the full year, revenue is anticipated to be between $4.9 billion and $5.1 billion, while adjusted operating income is estimated to be between $800 and $830 million.

Analysts monitoring CoreWeave predict its loss per share to be around $2.14 for fiscal 2025, and to shrink by 73.8% in fiscal 2026 to $0.56 per share.

What Do Analysts Expect for CoreWeave Stock?

Last week, BofA issued a reality check on CoreWeave, downgrading the stock from “Buy” to “Neutral” after a jaw-dropping rally. The analyst stated that “much of the near-term upside has been priced in,” with CRWV trading well above its peers on a stretched valuation. Yet Brad Sills did not sound the alarm without nuance.

Despite the downgrade, he acknowledged CoreWeave’s strong footing in the AI infrastructure space and lifted his price target to $185. His optimism stems from persistent demand and the firm’s strategic position amid surging AI workloads.

The valuation may be steep, but in the arms race for AI dominance, he believes CoreWeave’s upside story isn’t done yet.

CoreWeave stock has a consensus “Moderate Buy” rating overall. Out of 19 analysts covering the tech stock, five recommend a “Strong Buy,” one gives a “Moderate Buy,” 12 analysts stay cautious with a “Hold” rating, and one has a “Strong Sell” rating. Meanwhile, CRWV’s sharp climb has already blown past its average price target of $82.72, implying the stock is trading at a premium.