CoreWeave, Inc. (CRWV) saw its stock price soar 14.96% in intraday trading on Thursday, as investors cheered the company's recent $2.6 billion financing deal and growing optimism surrounding AI-related technologies. The significant uptick comes amid a broader rally among Nvidia-linked shares, highlighting the market's enthusiasm for companies positioned in the booming artificial intelligence sector.
The surge in CoreWeave's stock price can be attributed to several factors. Firstly, the company announced the closing of a $2.6 billion secured debt financing facility, led by Morgan Stanley and MUFG. This substantial funding is set to accelerate the delivery of services for OpenAI and expand CoreWeave's high-performance infrastructure, further solidifying its position as a leader in AI cloud computing.
Additionally, Wall Street analysts have taken notice of CoreWeave's potential. Citigroup upgraded its rating on the stock to "buy" from "neutral," citing stronger AI demand highlighted by Microsoft's recent robust results. The upgrade underscores growing confidence in CoreWeave's market position and the durability of AI demand. Morgan Stanley also raised its price target on CoreWeave to $91 from $58, reflecting increased optimism about the company's prospects in the rapidly expanding AI market.
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