Shares of CoreWeave Inc (NASDAQ:CRWV) surged notably on Tuesday amid renewed investor enthusiasm triggered by Deutsche Bank's decision to elevate its rating on the stock and revise upward its price outlook. The bank's analyst Brad Zelnick upgraded the equity from Hold to Buy, amending the price target from $100 to $140. These actions came in the wake of NVIDIA Corp (NASDAQ:NVDA) revealing a substantial $2 billion investment, enhancing its partnership with CoreWeave and signaling confidence in the latter's AI-focused roadmap.
Deutsche Bank's Positive Outlook Bolsters CoreWeave Prospects
Zelnick's upgrade reflects a strengthened conviction in CoreWeave's long-term growth trajectory, particularly given NVIDIA's expanded financial and operational involvement. The crucial $2 billion capital influx is anticipated to expedite CoreWeave's objective of scaling its AI infrastructure to reach 5 gigawatts by 2030, a milestone that underscores the company’s leadership in compute capabilities.
The analyst emphasized that sustained demand for AI compute resources continues to exceed supply, spotlighting CoreWeave’s competitive advantage stemming from robust GPU economics and high-quality assets. Zelnick also noted that NVIDIA’s deeper integration could enhance the adoption of CoreWeave's SUNK and Mission Control software within NVIDIA's reference architectures, potentially unlocking a "sizeable, high-margin" market for hybrid and multi-cloud software solutions.
This bullish stance is anchored in CoreWeave's current valuation, which has reverted to levels considered reasonable by the analyst, and positions the company favorably ahead of its impending earnings announcement.
Additional Analyst Perspectives and Market Momentum
Complementing Deutsche Bank’s positive outlook, Mizuho analyst Gregg Moskowitz maintained a Neutral rating on CoreWeave but raised his price target from $92 to $100. This shift likely contributes to the ongoing upward momentum in the stock price.
Technical Performance Highlights Strength
CoreWeave's market activity reveals notable strength, with the stock trading approximately 29.7% above its 20-day simple moving average (SMA) and 8.1% above its 100-day SMA, indicating pronounced short-term and medium-term positive trends. The share price has increased by nearly 176% over the past 12 months, placing it closer to its 52-week high than its low, which signals a robust longer-term uptrend.
Technical indicators further support this positive momentum. The Relative Strength Index (RSI) stands at 61.57, within neutral territory, suggesting the stock is neither overbought nor oversold. Meanwhile, the Moving Average Convergence Divergence (MACD) remains above its signal line, reflecting accelerated buying pressure and bullish sentiment.
At the time of this report, CoreWeave shares had risen 13.21% to $111.30, according to real-time market data, surpassing a key support level situated at $101.00.
Summary of Current Investment Landscape
CoreWeave finds itself at a pivotal juncture, evidenced by renewed analyst confidence fueled primarily by NVIDIA’s increased capital commitment and the prospect of strategic software integrations. The company’s aggressive goal to develop extensive AI infrastructure over the coming decade stands as a core driver underpinning market optimism. Positive technical trends further bolster the outlook in the short to medium term.
However, investors should remain attentive to upcoming earnings results which could impact the stock trajectory. Sustaining growth amid evolving AI compute demands and software development remains a critical theme for CoreWeave and its valuation moving forward.