CoreWeave, Inc. (CRWV) faces a downgrade from Needham, shifting from “Buy” to “Hold” due to valuation concerns despite strategic benefits from the CORZ acquisition. The acquisition is expected to unlock between 150MW and 200MW of additional IT capacity, valuable for the company’s growing high-performance computing and AI workloads.

Although CoreWeave, Inc. (CRWV) has strong demand for its platform among AI leaders, Needham believes most benefits are already priced in, leading to the downgrade. Revenue backlog for Q1 2025 stood at $25.9 billion as of March 31, 2025, showcasing continued interest in the company’s offerings.

CoreWeave, Inc. (CRWV) secures critical customer wins, including a deal with OpenAI contributing $11.2 billion to revenue backlog. The company also rapidly scales its purpose-built AI Infrastructure, with approximately 420 MW of active power and 1.6 GW of contracted power by the end of the quarter.

While CoreWeave (CRWV) shows investment potential, Needham suggests other AI stocks may offer greater upside with less downside risk. For those seeking undervalued AI stocks that could benefit from current economic trends, explore the free report on the best short-term AI stock for opportunities.

Read more at Yahoo Finance: Needham Downgrades CoreWeave (CRWV) Stock to Hold