10 AI Stocks on the Market’s Radar

8. CoreWeave, Inc. (NASDAQ:CRWV)

Number of Hedge Fund Holders: 62

CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks on the Market’s Radar. On December 4, Freedom Capital Markets initiated coverage on the stock with a “Buy” rating and a price target of $100.00. Firm analysts believe that CoreWeave’s stock plunge is largely fear-driven rather than based on fundamental deterioration.

The firm elaborated how CoreWeave has been down -28% since its F25Q3 results were announced on November 10. This disappointment has been largely due to a 3% cut in prior guidance to full-year 2025 revenues. Management has attributed this cut to a “subcontractor’s construction delay at one of CRWV’s 41 data centers.”

Ever since the earnings report, investor sentiment has turned negative and there are concerns about a potential AI bubble burst that could badly hurt CoreWeave as the largest “neocloud.”

“Conspiracy theories have spread among investors since then, and the overall industry narrative has clearly shifted to fear the AI Bubble will soon burst and CRWV will be a victim as the largest “neocloud.”

However, the firm believes these concerns are overblown and that investors will “regain confidence in the company to deliver its backlog, and with less overall concern that the ‘end is nigh’ for AI infrastructure building,”

“Although CRWV is in investors’ penalty box, we believe the stock significantly overstates the risk that it will not deliver its $56 billion multi-year revenue backlog. We believe its payments from hyperscalers, which support its capital expenditures, are secure for several years. These behemoths have the financial wherewithal to continue spending, and, perhaps more importantly, each of them views early and aggressive AI infrastructure building as a key competitive advantage.”

In the case that the backlogs were to fall, CoreWeave’s backstop from Nvidia could absorb “any extra capacity for seven years, analyst Paul Meeks noted.

CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.