Citi Doubles CoreWeave, Inc. (CRWV) Price Target, Cites Soaring AI Demand

We recently published a list of 10 AI Stocks Making Waves This Week. In this article, we are going to take a look at where CoreWeave, Inc. (NASDAQ:CRWV) stands against other AI stocks that are making waves this week.

CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes. On May 21, Citi analyst Tyler Radke kept a “Neutral” rating on the stock and more than doubled the price target from $43.00 to $94.00. The price target change follows CoreWeave’s first quarter financial results and guidance last week, along with its $4B deal with OpenAI, which also motivated investors.

“Overall we think the print reinforces CoreWeave’s high-growth status, especially with recent $4B OpenAI expansion deal, and likely assuages investor concerns around AI capex/infrastructure slowing. Shares have gone vertical …  While we’d argue a portion of the re-rating is justified, given strong Azure/hyperscaler numbers and capex, we reiterate our Neutral/High Risk rating as we’d like to see more progress on profitability and more customer diversification.”

-Citi analysts, led by Tyler Radke, in a Wednesday investor note.

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The hyperscalers’ second quarter and full-year guidance also came in ahead of consensus estimates. These results point at a strong demand for AI data centers.

“The FY guidance came in at $5B, or 161% Y/Y at the midpoint, 8pts ahead of our/street estimates, which was considerably higher than the 1Q beat and shows the company’s confidence in the increase of demand signals,” Radke added.

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Disclosure: None. This article is originally published at Insider Monkey.