Core Viewpoint - CoreWeave's valuation has significantly decreased, raising concerns about a key acquisition's viability [1][2] Valuation and Stock Performance - CoreWeave's stock price has fallen approximately 26% in the past three months, attributed to insider selling after the IPO lockup period expired [2] - The stock's valuation has dropped from around $160 at the time of the acquisition announcement to approximately $116 [9] Acquisition Plans - CoreWeave announced plans to acquire Core Scientific in an all-stock deal valued at $9 billion, aimed at improving financial efficiency and eliminating future lease obligations [8] - The declining share price may lead to a renegotiation of the acquisition deal, with Core Scientific's largest shareholder opposing it due to low valuation concerns [9] Financial Health - CoreWeave reported losses of $1.1 billion over the trailing 12 months, despite generating $3.5 billion in sales, indicating a need for improved earnings [10] - The potential loss of the Core Scientific acquisition could further exacerbate investor concerns and lead to additional stock price declines [10] Market Sentiment - High short interest in CoreWeave's stock reflects investor skepticism regarding its growth prospects and long-term success [4][6] - Although short interest has decreased recently, it remains significant, contributing to the stock's volatility [6]

Core Insights - Nvidia has established a strong position in the AI market through its advanced AI chips and partnerships with smaller companies like CoreWeave [1][2] - CoreWeave's stock has increased by approximately 195% since its IPO in March, largely due to its relationship with Nvidia and significant sales growth [2] - Nvidia holds a 7% stake in CoreWeave, which constitutes 91% of Nvidia's investment portfolio [2] Business Overview - Nvidia is recognized as the leader in AI chips, with its GPUs driving record revenue and earnings, resulting in a 1,300% stock increase over the past five years and a market value exceeding $4 trillion [5] - CoreWeave provides access to Nvidia's GPUs through its cloud platform, allowing customers to rent GPUs flexibly, and has seen its sales triple in the latest quarter [6] Recent Developments - Nvidia has signed a $6.3 billion order with CoreWeave, ensuring it will purchase any unused cloud capacity from CoreWeave until April 13, 2032 [7] - This agreement mitigates the risk of CoreWeave being left with excess capacity, providing reassurance to shareholders [8] - The deal indicates Nvidia's confidence in sustained demand for AI infrastructure, aligning with its prediction that AI spending could reach $4 trillion by the end of the decade [9] Investment Implications - The agreement is viewed positively for shareholders of both companies, as it reduces risk for CoreWeave and confirms strong demand for AI from Nvidia [10]

CoreWeave, Inc. (NASDAQ:CRWV) is one of the AI Stocks Making Headlines This Week. On September 16, Citizens JMP upgraded the stock to “Outperform” from Market Perform. The firm believes that investors are not aware enough of how the firm generates its revenue. This is why the stock is misunderstood. Moreover, analyst Greg Miller sees accelerating hyperscale outsourcing in the GPU-as-a-Service (GPUaaS) market. He pointed to Oracle’s $450 million record RPO and Microsoft’s reported $17 billion contract wit ...

Core View - CoreWeave, Inc. (NASDAQ:CRWV) is highlighted as a significant AI stock, with Deutsche Bank Analyst Brad Zelnick issuing a "Catalyst Call: Buy" for short-term investment due to strong AI demand [1][2] Company Capacity and Demand - CoreWeave is expected to have substantial powered shell capacity coming online in the next 12-18 months, although it has not yet signed customer contracts for this capacity [2] - The demand for AI infrastructure is described as "almost insatiable," which is anticipated to exceed supply in the near- to medium-term [2] Revenue and Growth Potential - Positive factors are aligning to support upward revenue estimates for CoreWeave in the upcoming quarters, driven by potential new customer contracts and incremental datacenter capacity [2] - The company's Q3 report is seen as a potential catalyst for stock performance [2] Investment Considerations - While CoreWeave shows potential as an investment, there are other AI stocks that may offer greater upside potential with less downside risk [2]

Core Insights - The rise of artificial intelligence (AI) has significantly impacted the technology sector, with Nvidia emerging as a leader due to its GPUs, which have seen a price increase of over 1,100% since early 2023, alongside a revenue surge of 673% and net income growth of 1,770% [2] - The demand for AI-capable chips has led to a shortage of high-quality GPUs, creating opportunities for companies like CoreWeave, which offers cloud-based AI resources [3] - CoreWeave has strengthened its partnership with Nvidia, which includes Nvidia holding a 5% stake in CoreWeave, valued at over $2.86 billion, and a recent agreement worth $6.3 billion for cloud computing capacity [8][9] Company Performance - CoreWeave reported a revenue of $1.21 billion in the second quarter, a 207% increase year over year, and improved its loss per share to $0.60, a 63% improvement [11] - The company's remaining performance obligation (RPO) rose 86% year over year to $30.1 billion, indicating strong ongoing demand, with a new $4 billion deal with OpenAI in addition to an existing $11.9 billion contract [12] - CoreWeave is investing in data center and server infrastructure to meet unprecedented demand for its services [13] Market Position and Valuation - Following a significant rise in stock price post-IPO, CoreWeave's stock is currently 35% below its peak but still shows a 197% increase overall [14] - The company's valuation has become more attractive, currently selling for 13 times sales, which is considered reasonable for a high-growth company with strong backing and growth potential [15]

Group 1 - The article discusses the investment potential of CoreWeave (NASDAQ: CRWV), highlighting its competitive advantage in speed of deployment, which may be temporary [1] - The author previously assigned a "Hold" rating to CoreWeave in early June, indicating a cautious stance on the stock [1] - Beyond the Wall Investing offers various features including a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas [1] Group 2 - The article emphasizes that past performance does not guarantee future results, and no specific investment recommendations are provided [2] - It clarifies that the analysts contributing to the platform may not be licensed or certified by any regulatory body [2]

Core Viewpoint - CoreWeave's recent $6.3 billion deal with NVIDIA highlights its essential role in the AI boom, positioning it as a key player in the infrastructure supporting the AI ecosystem [1][2]. Group 1: Strategic Partnership with NVIDIA - The relationship between CoreWeave and NVIDIA extends beyond a typical customer-supplier dynamic, with NVIDIA being a key partner and direct shareholder [3]. - CoreWeave is the first cloud provider to deploy NVIDIA's complete Blackwell GPU portfolio at scale, enhancing NVIDIA's market reach [4]. - The $6.3 billion agreement includes a strategic commitment from NVIDIA to purchase any unsold cloud computing capacity from CoreWeave through April 2032, significantly altering CoreWeave's risk profile [5][6]. Group 2: Financial Performance and Growth - CoreWeave's aggressive expansion strategy is evidenced by a record $2.9 billion in capital expenditures in Q2 2025, with full-year projections between $20 billion and $23 billion [8]. - The company is on track to more than double its active power capacity to over 900 megawatts by the end of 2025, supported by 2.2 gigawatts of contracted power [8]. - CoreWeave's revenue grew 207% year-over-year in Q2, reaching $1.21 billion, with a revenue backlog of $30.1 billion [9][10]. Group 3: Future Outlook and Investor Considerations - The NVIDIA deal serves as a long-term catalyst for CoreWeave, solidifying its foundational role in the AI ecosystem and presenting a compelling investment case [11]. - Despite recent stock volatility due to insider selling post-IPO lock-up, much of the selling was pre-scheduled, indicating planned financial diversification [12][13]. - Key strategic initiatives to monitor include the acquisition of Core Scientific, progress on data center launches, profitability improvements, and growth in revenue backlog [14][15].

Upgrades - Loop Capital upgraded Union Pacific (UNP) to Hold from Sell with a price target of $227, up from $214, noting that the shares are down 5% year-to-date and valuation multiples are modestly above their five-year ranges [2] - BofA upgraded Prologis (PLD) to Buy from Neutral with a price target of $130, up from $118, highlighting improved conversion rates of new lease proposals into signed leases during Q3 compared to Q2, and an optimistic outlook for demand versus supply dynamics through 2026 [3] - Goldman Sachs upgraded Hershey (HSY) to Buy from Sell with a price target of $222, up from $170, citing a compelling risk/reward scenario following multiple guidance reductions over the past year [4] - Arete upgraded Baidu (BIDU) to Buy from Sell with a price target of $143, emphasizing the potential of Baidu's Kunlun chip venture to offset challenges in its online advertising business due to AI chip shortages in China [5] - Citizens JMP upgraded CoreWeave (CRWV) to Outperform from Market Perform with a price target of $180, projecting significant growth for its graphics processing unit-as-a-service business from $3B-$4B to an estimated $300B [4] Downgrades - TD Cowen downgraded Warner Bros. Discovery (WBD) to Hold from Buy with an unchanged price target of $14, expressing concerns about the stock's risk/reward profile following a recent rally and potential bid from Paramount Skydance [6] - Rothschild & Co Redburn downgraded Live Nation (LYV) to Neutral from Buy with a price target of $170, up from $144, indicating that margin expansion will slow from fiscal 2026, limiting upside potential to earnings estimates [6] - Stifel downgraded VF Corp. (VFC) to Hold from Buy with a price target of $16, up from $15, stating that the stock's risk-reward is now balanced after a 12.5% one-month return, despite a strong outcome from the $600M sale of Dickies [6] - JPMorgan downgraded Camp4 Therapeutics (CAMP) to Neutral from Overweight without a price target, noting that while the company has a cash runway into 2027, its lead program is in the early stages [6] - JPMorgan downgraded Neumora Therapeutics (NMRA) to Underweight from Neutral without a price target, citing a failed Phase 3 trial for its navacaprant treatment in major depressive disorder [6]

Nvidia (NASDAQ:NVDA) said it is working with CoreWeave (NASDAQ:CRWV), Microsoft (NASDAQ:MSFT), Nscale and OpenAI to build U.K.'s AI infrastructure for boosting innovation, economic growth, and jobs. The U.S. tech giant noted that by the end of 2026, the companies will build ...

Group 1 - CoreWeave has signed a new order agreement with NVIDIA worth up to $6.3 billion, aimed at providing reserved cloud computing capacity for CoreWeave's customers [1] - NVIDIA will purchase any unused capacity from CoreWeave between April 2025 and April 2032, contingent on CoreWeave meeting delivery and service availability conditions [1] - Raymond James has initiated coverage on CoreWeave with an "outperform" rating and a target price of $130, citing optimistic views on the sustainability of scale laws and underestimation of capital expenditure forecasts for AI giants [1] Group 2 - Analysts predict that the capital expenditure of the "AI Big Six" will approach $900 billion by 2028, significantly higher than the current market estimate of $550 billion [2] - The growth of the total addressable market (TAM) for GPU as a Service (GPUaaS) is accelerating, with Citizens raising its rating on CoreWeave to "outperform" and setting a target price of $180 [2] - Analysts believe that the outsourcing trend among large-scale enterprises will outweigh potential negative factors in the short term, despite some long-term challenges in the business model [3] Group 3 - Citizens analysts noted that the GPUaaS market could grow from $3-4 billion to approximately $300 billion, driven by significant contracts and record remaining performance obligations (RPO) [3] - There is a belief that the management team is capable of addressing challenges related to AI software stack expansion, financing, and customer diversification, aiming for $20 billion in annual recurring revenue by the end of 2027 [2]