CoreWeave Stock Rebounds Amid AI Infrastructure Skepticism
CoreWeave's CRWV shares surged 18% from Tuesday lows following the launch of its Zero Egress Migration program, eliminating cloud transfer fees for major providers. The rally comes despite a 50% monthly plunge that reflects broader market doubts about AI infrastructure valuations.
H.C. Wainwright maintains a $180 price target, citing $1.36 billion Q3 revenue and $55.6 billion in contractual backlog with anchor clients like Meta and OpenAI. Nvidia's 7% stake and 62% revenue growth signal continued confidence in CoreWeave's GPU-as-a-service model.
The disconnect between operational performance and stock volatility highlights investor caution about capital-intensive AI plays. With $50 billion in performance obligations, CoreWeave's fortunes remain tied to enterprise adoption of generative AI technologies.