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Nvidia Invests $2B in CoreWeave AI Infrastructure
27 Jan
Summary
- Deutsche Bank upgraded CoreWeave to buy, raising target price.
- Nvidia invested $2 billion to accelerate CoreWeave's AI factories.
- CoreWeave's stock has surged 146% since its March IPO.
Deutsche Bank analyst Brad Zelnick has upgraded CoreWeave to 'buy' with a $140 price target, signaling a 42% potential upside. This upgrade comes after Nvidia announced a $2 billion investment in CoreWeave, aimed at accelerating the company's expansion of 5 gigawatts of AI factories by 2030. Zelnick highlighted that this deal reinforces CoreWeave's technical leadership and secures access to crucial resources.
The investment allows CoreWeave to remain at the forefront of adopting new Nvidia compute architectures. Furthermore, it opens a significant hybrid and multi-cloud software opportunity for CoreWeave by potentially integrating its proprietary software into Nvidia's reference architectures. CoreWeave's valuation is now considered reasonable, with expectations of strong performance ahead of its upcoming earnings and initial fiscal year 2026 guidance.
CoreWeave's stock has experienced a notable surge of 146% since its public debut in March. However, it has also seen a decline of 46% from its peak in June. Analysts anticipate that CoreWeave's consensus revenue forecasts could increase significantly if the company successfully delivers on its planned capacity for contracted customers.
