CoreWeave Inc. CRWV is accelerating its AI infrastructure push, with backlog surging on OpenAI contracts and a $9 billion Core Scientific, Inc. CORZ acquisition in play.
Cantor Fitzgerald analyst Thomas Blakey initiated coverage on CoreWeave with a price forecast of $116.
CRWV is delivering impressive returns. See what is driving the move here.
Blakey explained that CoreWeave is well-positioned to benefit from the rapid expansion of the AI market, particularly in large language model training and inference. The analyst highlighted its differentiation as a software-driven, AI-focused hyperscaler.
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The analyst added that while the company's growth outlook is strong and supported by near-term demand and supply imbalances, it also faces longer-term execution risks, including customer concentration, financing challenges and power-related constraints.
The analyst indicated that CoreWeave, a leading GPU-as-a-Service provider, is positioned to capture a large share of the rapidly expanding AI-optimized IaaS market, which is projected to grow sharply through the decade.
He highlighted the company's expected revenue growth far outpaces broader IaaS trends, supported by its strong customer relationships, proprietary tools and integrated platform that helps optimize costly GPU usage.
Blakey added that CoreWeave's strategic partnerships, competitive moat, and growing importance in AI training position it well, while the potential to expand into accelerated inference computing could provide an additional long-term growth driver.
Blakey pointed out that CoreWeave's remaining performance obligation rose from $15.1 billion at the end of 2024 to $30.1 billion by the second quarter of 2025, with roughly half of that backlog tied to new contracts with OpenAI.
Apart, the analyst noted that on July 7, 2025, CoreWeave announced a $9 billion all-stock deal to acquire Core Scientific, offering 0.1235 of its shares for each CoreScientific share based on a ~$160 VWAP.
Blakey added that completing the transaction and converting Core Scientific's bitcoin-linked power assets into high-performance computing capacity could serve as a meaningful near-term catalyst for CoreWeave shares.
CRWV Price Action: CoreWeave shares are trading higher by 6.07% to $96.96 at publication on Wednesday.
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