Cathie Wood Is Buying the Dip in CoreWeave Stock. Should You?

CoreWeave Investment Insights - Cathie Wood has acquired an additional 437,345 shares of CoreWeave (CRWV), bringing her total ownership to nearly 0.79 million shares amid a selloff driven by valuation concerns and macroeconomic uncertainty in AI stocks [1][2] - CoreWeave's stock has decreased approximately 50% from its peak in late October, indicating significant market volatility [2] - Wood's investment reflects confidence in CoreWeave's long-term prospects, especially as global hyperscale spending is projected to increase by 67% in 2025 and exceed $600 billion next year [3] Market Position and Valuation - The current relative strength index (14-day) for CoreWeave is below 26, suggesting that bearish momentum may be waning, which could present a buying opportunity as the market approaches 2026 [4] - CoreWeave shares are considered attractive due to a structural shortage in AI infrastructure capacity, with major tech companies allocating about 30% of their sales to AI infrastructure investments, significantly higher than historical averages [5] - Following recent declines, CoreWeave is trading at a valuation of less than 9 times sales, making it a compelling investment option [5] Strategic Partnerships and Future Outlook - CoreWeave's collaborations with leading AI developers and hyperscale cloud firms enhance its market position as these companies expand their computational capabilities [6] - Options pricing suggests that CRWV could reach approximately $92 by late February, indicating potential for significant price appreciation [6] - The consensus rating for CoreWeave stock is currently "Moderate Buy," with a mean target price of about $131, suggesting an upside potential of over 85% from current levels [7]