Evercore ISI Reiterates Outperform on CoreWeave (CRWV) with $175 Price Target

Published on October 14, 2025 at 4:37 pm by Ghazal Ahmed in News

CoreWeave, Inc. (NASDAQ:CRWV) is one of the Trending AI Stocks on Wall Street. On October 8, Evercore ISI analyst Amit Daryanani reiterated an Outperform rating on the stock with a $175.00 price target.

The firm is bullish on the stock, calling its profitability model strong based on its durable contracts, Nvidia’s backing, and long-term GPU demand.

“We think it is worth revisiting the topic of unit economics for CRWV, especially given investor concerns surrounding profitability/business model following yesterday’s Information article discussing the (low) profitability of ORCL’s GPU cloud business. Despite the capex intensity/debt financing required to deploy GPU clouds, we view CRWV’s model as durable, risk-managed, and profitable at scale even when taking high levels of depreciation expenses into account. Key considerations: 1) Multi-year Take-or-Pay/Noncancelable Contracts: CRWV sees an average 4-year duration for customer contracts (have been trending more toward 5 or more for more recent deals). 2) Built-to-Suit, Not On Spec: CRWV’s capacity is built not on spec and only developed once customer contracts are signed; the company typically receives prepayments equating to ~15–25% of TCV to fund initial capex requirements (GPUs, DC capacity). 98% of revenue is from reserved capacity. 3) NVDA MSA Provides Margin of Safety: In the event that CRWV does have unutilized capacity, NVDA is obligated to purchase the residual unsold capacity through April 2032.”

“4) Potential for Useful Lives > 6 Years: Management has pointed to several anecdotes/proof points that provide them with confidence they can continue to monetize GPUs well past their useful lives (Volta GPUs still in use, multi-year Hopper contracts continue to be signed, customers comfortable with signing 5–6 year Grace Blackwell contracts). Our analysis of a hypothetical ~$3.2B TCV 4-year GB200 contract resulting in ~$1B of capex, suggests that once deployed, CRWV should be able to return 40–50% incremental EBIT margins (potential for upside in EBIT margins beyond year-6 once hardware is fully depreciated) and ~70% incremental EBITDA margin. With the differences between incremental margins in our analysis and CRWV’s current mid-teens margin profile is more attributed to accelerated investments to support growth, revenue timing, and lower scale (currently). Net/net: We continue to hold a positive view on CRWV fundamentals. Maintain OP/$175 Target.”