DA Davidson Upgrades CoreWeave (CRWV) to Neutral Citing OpenAI Fundraise as Short-Term Catalyst

CoreWeave Inc. (NASDAQ:CRWV) is one of the best up and coming stocks to buy according to Wall Street. On January 5, DA Davidson analyst Gil Luria upgraded CoreWeave to Neutral from Underperform with a price target of $68, up from $36. Despite expressing some reluctance, the firm upgraded the stock and cited OpenAI’s potential $100 billion fundraise as a significant catalyst for CoreWeave.

Although the firm noted that the success of this capital raise is not guaranteed, a successful round would enable OpenAI to meet its 2026 obligations, including those to CoreWeave. Despite the upgrade, the firm warned that CoreWeave’s equity could eventually become worthless because debt holders currently own the entirety of the enterprise value. However, DA Davidson believes that an OpenAI fundraiser would effectively delay an inevitable reckoning for the company’s capital structure.

On the same day, CoreWeave Inc. (NASDAQ:CRWV) also announced that it will integrate the Nvidia Rubin platform into its AI cloud infrastructure. Positioned as one of the first cloud providers to deploy this tech, CoreWeave expects to launch the platform in H2 2026. This move is designed to support the next generation of agentic AI, which focuses on sophisticated reasoning, large-scale inference, and complex workloads like drug discovery, genomic research, and climate simulation.

The deployment will feature Nvidia Vera Rubin NVL72 racks, which CoreWeave manages as single programmable entities through its proprietary Rack Lifecycle Controller. This Kubernetes-native orchestrator coordinates power delivery, liquid cooling, and hardware validation to ensure racks are production-ready.

CoreWeave Inc. (NASDAQ:CRWV) operates a cloud platform that provides scaling, support, and acceleration for GenAI. It builds the infrastructure that supports compute workloads for enterprises.

While we acknowledge the potential of CRWV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, 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.