J.P. Morgan Lifts PT on CoreWeave Ahead of Q2 Report

CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Making Waves on Wall Street. On August 11, JPMorgan analyst Mark Murphy raised the price target on the stock to $135.00 (from $66.00) while maintaining an Overweight rating. The analyst is optimistic on the cloud computing stock ahead of its quarterly results Tuesday after the bell.

Murphy is "cautiously optimistic" on the long-term prospects of the company, particularly after it secured a five-year deal with OpenAI for artificial intelligence data centers at $11.9 billion.

"Our sense is that CoreWeave's opportunities are going to get bigger and lumpier, likely to the surprise of investors, though we are not making a specific call on the upcoming Q2 results as it is likely a futile exercise to speculate on the closing of specific deals and investors should in fact expect extreme lumpiness in CoreWeave's pattern of large bookings.”

Even though the company’s long-term AI ramp is "clear" and "intact," the timing between large bookings and buildouts remain an overhang on a quarterly basis which have the potential to create "ongoing extreme volatility in CRWV shares.”

Nevertheless, the firm is optimistic that CoreWeave will yield growth in the long run.

"Although timing and lumpiness still give us pause and create extreme volatility, we are positive on the potential for continued momentum in CoreWeave's business pipeline, and our field work suggests long-range potential for binary-outcome transactions which are very difficult to handicap and, if successful, can drive a very surprising magnitude of outsized growth and outsized debt financing with short-term cash burn.”

CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.

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