Barclays Downgrades CoreWeave (CRWV) to Equal Weight, Lifts PT

On Tuesday, Barclays analyst Raimo Lenschow downgraded CoreWeave Inc. (NASDAQ:CRWV) from Overweight to Equal Weight but increased the price target from $70 to $100. This adjustment comes after a 157% rally in the stock since its IPO in March 2025, which was priced at $40 per share.

Despite the downgrade, CoreWeave shares traded over 13% higher on Tuesday morning, reaching a fresh high of $116.95. Barclays continues to recognize CoreWeave's role in the GenAI world. However, the firm believes that the stock's valuation could be stretched to move higher off fundamentals in the near term, especially given the absence of close comparable peers in the AI infrastructure sector. Barclays also cautions that the current valuation may not be sustainable without continued performance.

CoreWeave's performance is partly attributed to its strategic partnerships, including Nvidia, which owns ~7% of the company, and other contracts with major clients like OpenAI and Microsoft. In Q1 2025, CoreWeave reported a 420% year-over-year revenue growth and reached $981 million. For Q2, the company projected sales of $1.06 to $1.1 billion. CoreWeave Inc. (NASDAQ:CRWV) operates a cloud platform that scales, supports, and accelerates GenAI. It builds the infrastructure that supports compute workloads for enterprises.

While we acknowledge the potential of CRWV to grow, 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 AI stock that is more promising than CRWV and that has 100x upside potential, check out our report about the cheapest AI stock.

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