CoreWeave (NASDAQ: CRWV) Gains on Bank of America Coverage Initiation with Buy Rating and $100 Price Target
Shares of CoreWeave (NASDAQ: CRWV) edged approximately 1% higher in Tuesday morning trading following the resumption of coverage by Bank of America, which assigned the stock a Buy rating alongside a $100 price target. The bullish call from the investment bank reflects a positive outlook on the company’s expanding customer base and the sustained, robust demand for artificial intelligence infrastructure.
Analyst Tal Liani, who authored the research note, argued that CoreWeave is well-positioned to capture a growing share of the estimated $79 billion AI infrastructure-as-a-service market. Liani highlighted several key factors supporting this thesis, including persistent demand for high-performance computing power, the company’s development of software specifically tailored to AI workloads, and its strategic partnerships with industry heavyweights such as Nvidia and OpenAI.
In addition, Liani pointed to the emergence of agentic AI—a category of AI systems capable of autonomous decision-making and action—as a trend that could further amplify infrastructure requirements. As agentic AI applications become more widespread, he noted, the resulting increase in demand may help keep computing capacity constrained, potentially sustaining favorable pricing dynamics for infrastructure providers like CoreWeave.
The analyst also offered a long-term perspective on supply and demand imbalances in the sector. Liani expects capacity shortages across compute resources, power availability, and related infrastructure to persist for years, with no meaningful relief anticipated before 2029. This extended period of constrained supply, he suggested, could continue to benefit companies that have secured early access to critical resources and established strong partnerships.
CoreWeave’s Recent Share Performance and Valuation Considerations
CoreWeave has attracted considerable investor attention in recent months, particularly following its public market debut. The stock most recently closed at $74.41, reflecting a complex short-term performance picture. While the shares recorded a modest gain on the day of the Bank of America note, they have experienced negative momentum over the past week and over the three-month period, indicating some near-term volatility.
Zooming out, the broader performance metrics show a more nuanced trajectory. CoreWeave’s share price has delivered a 4.66% return over the past seven days and a 17.92% return over the past 90 days. On a year-to-date basis, the stock is up 6.19%. Despite these positive returns over certain time frames, analysts note that short-term momentum has shown signs of fading, prompting questions about whether the current pullback represents a buying opportunity or whether the market has already priced in expectations for future growth.
A Divergence in Narratives: Valuation and Future Growth
The company’s financial profile adds another layer of complexity to the valuation debate. CoreWeave has demonstrated impressive revenue growth, yet it continues to report operating losses—a common characteristic among rapidly scaling infrastructure companies that are investing heavily in capacity expansion ahead of profitability.
Amid this backdrop, a notable divergence has emerged in how market participants assess CoreWeave’s valuation. According to Vestra, a widely followed analytical platform, one prevailing narrative suggests that CoreWeave is significantly undervalued. Vestra’s model estimates the company’s fair value at $133.12 per share, representing a substantial premium to the recent closing price of $74.41. This valuation thesis builds a detailed case around the sustained growth of AI infrastructure demand and the capital-intensive nature of the business, arguing that CoreWeave’s current market price does not fully reflect its long-term potential.
For investors weighing their options amid CoreWeave’s recent pullback, the current environment may present an opportunity to evaluate a broader selection of companies operating within the same AI infrastructure theme. A curated basket of 35 AI infrastructure stocks—all of which are positioned to benefit from the same underlying trends in computing demand, power requirements, and data center expansion—offers one lens through which to compare relative value and growth prospects across the sector.