CoreWeave (CRWV) reported a strong Q3 but lowered its fiscal 2025 revenue outlook by $150 million to $5.10 billion, citing an isolated supply chain constraint, BofA Securities said in a Tuesday note.

The company's revised guidance implies a 9% reduction in Q4 expectations and follows a 40% cut to 2025 capital expenditure guidance, now projected at $13 billion, according to the report.

The brokerage noted that despite the reduction, AI infrastructure demand remains strong, with backlog up 200% year over year to $55 billion, fueled by expansions from leading AI companies and new lab contracts.

Broader industry trends highlight CoreWeave's strong positioning, with major AI players such as Anthropic projecting $70 billion in revenue by 2028 and OpenAI forecasting $100 billion by 2027, while new practices such as AI infrastructure prepayments underscore rising urgency for compute capacity, BofA said.

The firm maintained its neutral rating on the stock and lowered its price target to $140 from $168.

Shares were down more than 13% in recent trading.

Price: 90.65, Change: -14.96, Percent Change: -14.17