Shares of CoreWeave were upgraded to Buy on Monday after the stock plunged 25% last week as fears around the financing needed for the massive artificial-intelligence-infrastructure buildout led to a brutal selloff among AI-related stocks.

The cloud computing company, which pioneered the so-called neocloud sector of selling AI computing, was at the center of the stock market panic last week after its corporate bonds sold off, signaling credit investor concerns about the company's mounting debt and future borrowing costs.

That didn't stop Goldman Sachs analyst Gabriela Borges from upgrading the stock to Buy from Neutral. The analyst lowered her price target on the stock to $106 from $139, but that new price target still represented 72% upside from the closing price of $61.39 on Friday.

CoreWeave stock rose 2.3% to $62.80 on Monday after ending Friday down 12%. Shares fell 25% last week and have declined 56% since closing at $137.98 on May 6.

The sharp share price decline has brough the stock well below both its 200-day moving average, at the $92.40 price level, and its 50-day moving average, at $86.30.

Goldman Sachs sounded an optimistic tone.

The firm noted that while questions remain about how CoreWeave will be able to finance its next phase of growth, it believes CoreWeave's business is "biased to the upside" over the next 24 months with favorable contract pricing expected to continue.

This rationale is based on the idea that neocloud providers can charge more for AI computing power as demand for AI compute accelerates.

Hourly rental fees for computing power have already increased about 33% since December, Northland Equity Capital Markets recently estimated.

Goldman Sachs added that CoreWeave stock remains differentiated from other neocloud companies. Fellow neocloud stock Nebius rose 3% on Monday while Iren advanced 4.4%.