CoreWeave, Inc. (NASDAQ: CRWV) saw its stock soar 5.10% in Wednesday's pre-market trading session following a bullish initiation from Cantor Fitzgerald. The investment bank started coverage on the artificial intelligence (AI) cloud computing firm with an Overweight rating and set an ambitious price target of $116.

Cantor Fitzgerald analysts expressed optimism about CoreWeave's position in the rapidly growing AI market. They believe the company is well-positioned to capitalize on secular growth trends in AI, particularly in large language model (LLM) training and inference-based applications. The analysts also cited comfort with near-term demand and supply dynamics, as well as CoreWeave's competitive edge in the sector.

The positive coverage highlights CoreWeave's potential in the AI infrastructure space, with analysts suggesting that while the company's revenue and backlog primarily come from AI model training, inferencing could become a significant growth driver in the future. Moreover, CoreWeave's strategic partnership with Nvidia, which owns a 5.1% stake in the company post-IPO, is seen as a key advantage in tapping into the expanding opportunities in AI computing platforms and factories.