CoreWeave (CRWV) Climbs 22.6% on 'Buy' From Citigroup

We recently published 10 Firms in the Limelight. CoreWeave Inc. (NASDAQ:CRWV) is one of the best performers on Friday.

CoreWeave surged by 22.64 percent on Friday to close at $83 apiece as investors took path from an investment firm’s renewed coverage, but were generally optimistic for the stock.

In a market report, Citigroup issued a “buy” recommendation on shares of CoreWeave Inc. (NASDAQ:CRWV), albeit it slashed its price target by 30 percent to $135 from $192 previously.

Still, the new price target marked a 62 percent upside potential from its latest closing price.

“Coreweave continued to see strong bookings in 3Q with 85% QoQ and 270% Y/Y growth, but supply constraints and specifically powershell capacity delays resulted in a timing issue with revenue + CapEx (Capital Expenditure) pushed from Q4 into 1Q26. Shares have been under pressure post quarter, amidst broader AI market + financing concerns,” Citigroup said.

However, it said that recent management check indicates that CoreWeave Inc.’s (NASDAQ:CRWV) capacity and bookings would continue to expand in the fourth quarter of the year, which could support growth acceleration in 2026.

“Financially, [CoreWeave Inc. (NASDAQ:CRWV)] is in a strong position with over 60% of its revenue attached to investment-grade customers and plans to announce a new credit facility in the first half of next year, which should further reduce its cost of capital,” Citigroup said.

While we acknowledge the potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.