Shares of CoreWeave, Inc. (CRWV) jumped 5.02% in pre-market trading on Thursday, rebounding from recent losses as investors responded to positive analyst coverage and the company's strong position in the AI infrastructure market.

The surge comes after Cantor Fitzgerald analyst Thomas Blakey initiated coverage of CoreWeave with an overweight rating and a price target of $116. Blakey described CoreWeave as a "best-in-class" player in the GPU-as-a-service market, which is projected to reach $399 billion by 2028. The analyst's bullish stance is based on industry checks indicating CoreWeave's leadership as an AI-infrastructure provider and strategic partner, outperforming its peers.

Investors appear to be reassessing CoreWeave's potential following a 40% stock decline since its second-quarter earnings call on August 12. The company's recent acquisition of Core Scientific is seen as a strategic move to address power supply concerns and improve profitability. This acquisition provides CoreWeave access to 1.3 gigawatts of power through Core Scientific's national data-center footprint, potentially serving as a near-term catalyst for the stock. Additionally, the shift in CoreWeave's revenue and backlog from AI training to inference is viewed as a larger market opportunity and a potential long-term growth driver.