Bank of America Downgrades CoreWeave on Valuation Concerns Amid AI Infrastructure Boom
Bank of America analyst Bradley Sills downgraded CoreWeave (CRWV) to Hold from Buy, citing a 145% rally since Q1 earnings and a premium 2027 EV/EBIT valuation of 25x. The cloud AI infrastructure provider continues gaining traction, including powering Google''s recent deal with OpenAI.
Despite the downgrade, Sills raised the price target to $185 from $76, highlighting new hyperscaler contracts, expanded OpenAI partnerships, and improved debt terms. The MOVE reflects balancing near-term valuation risks against long-term AI infrastructure demand.