Stifel Downgrades CoreWeave, Inc. (CRWV) To Hold Following Core Scientific Acquisition

CoreWeave, Inc. (NASDAQ:CRWV) is among the 13 Best Booming Stocks to Buy Now. On July 8, Stifel downgraded the stock to Hold from Buy, while lifting its price target to $115 per share from $75.

Stifel Downgrades CoreWeave, Inc. (CRWV) To Hold Following Core Scientific Acquisition

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The adjustment followed a recent announcement by the data center infrastructure provider regarding its acquisition of Core Scientific. CoreWeave, Inc. (NASDAQ:CRWV) expects the move to enhance operational efficiencies, improve financial flexibility, and result in expanded expertise.

While the analysts acknowledged the likely long-term benefits from the takeover, they noted ‘key near-term overhangs’, which prompted the firm’s cautious outlook for CoreWeave, Inc. (NASDAQ:CRWV) and became the reason for the downgrade.

Despite near-term challenges the company could face during the integration phase, Stifel significantly lifted CoreWeave, Inc. (NASDAQ:CRWV)’s price target, reflecting the scale of value creation from the acquisition.

CoreWeave, Inc. (NASDAQ:CRWV) is a cloud infrastructure technology company. The stock has had impressive returns of nearly 283% since its IPO in March this year.

While we acknowledge the risk and potential of CRWV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRWV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.