CoreWeave, Inc. (CRWV) Slides as Morgan Stanley Flags Execution Risks and Data Center Delays Ahead of Earnings

CoreWeave, Inc. (NASDAQ:CRWV) is one the Top 10 AI Stocks in Focus on Wall Street. Shares of CoreWeave plunged on Friday, February 20, after Morgan Stanley reiterated the stock as Equal Weight with a price target of $99. The investment bank said it is cautious on CRWV ahead of earnings on Feb. 26.

Analyst Keith Weiss cited concerns over the company’s ability to meet ambitious growth targets amid operational delays. Recent legal complaints regarding service shortfalls have further fueled investor skepticism regarding CoreWeave’s capacity to deliver on customer commitments.

According to Weiss, future rating improvements for CRWV will largely depend on significantly scaling power capacity, addressing data center delays, conversion of projects under construction into spending, and growing the backlog and customer base.

CoreWeave has secured and expanded large contracts from the most demanding GenAI users, though easing investor concerns regarding management’s ability to consistently execute on stated goals will require 1) exiting the year with > 850 MW of active power, 2) resolving prior data center delays, and 3) outlining a credible path to securing an additional 5 GW of capacity.

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

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.