Mizuho Sees Long-Term Upside in CoreWeave (CRWV) Despite Near-Term Risks

CoreWeave, Inc. (NASDAQ:CRWV) is one of the AI Stocks in Focus on Wall Street. On January 26, Mizuho analyst Gregg Moskowitz raised the price target on the stock to $100.00 (from $92.00) while maintaining a “Neutral” rating. The firm is optimistic on CRWV long-term, seeing upside from software stack sales and improved confidence after $2B NVDA investment & 5GW build-out plans. However, risk/reward remains even in the short term.

Mizuho discussed the recent expansion of relationship between CoreWeave and Nvidia, highlighting plans to accelerate the build-out of 5GW of capacity and an incremental $2 billion equity investment from AI chip maker NVIDIA.

This announcement also detailed the potential for CRWV to sell its software stack to other cloud partners and enterprises, which the company has emphasized to likely be a “meaningful and margin accretive” long-term opportunity.

Mizuho continues to believes that CoreWeave is poised to capture a meaningful share of an AI cloud provide market growing at a server-melting pace. The firm did have some reservations earlier, but the recent announcement has given it confidence in CRWV’s long-term trajectory.

“That said, last July we downgraded to Neutral as we had assessed the risk/reward for CRWV as balanced. Following recent hiccups, we are somewhat more reserved about the magnitude of potential revenue upside for CRWV over the next few quarters in this highly capacity-constrained environment, but today’s announcement provides incremental confidence in the longerterm trajectory. Reiterate Neutral and increase PT to $100 (was $92).”

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

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