CoreWeave stock surges despite valuation concerns, hitting an all-time high of $187

From Yahoo Finance: 2025-06-26 07:30:00

CoreWeave (CRWV) is rising in the AI sector, providing specialized infrastructure for AI, ML, and visual effects. Despite a recent downgrade from Bank of America due to valuation concerns, the company’s stock has surged, hitting an all-time high of $187. Can it sustain this growth in 2025?

With a market cap of $82.8 billion, CoreWeave powers AI workloads through GPU- and CPU-optimized compute. The company’s recent Q1 earnings report showed a revenue spike of 420% year over year, with strong deal backlogs. However, mounting losses remain a concern.

Despite CoreWeave’s impressive growth, the stock’s valuation is high at 39.7 times sales, trading at a premium compared to peers. Analysts predict a loss per share of $2.14 for fiscal 2025, shrinking by 73.8% in fiscal 2026. BofA downgraded the stock from “Buy” to “Neutral” but maintained a price target of $185.

CoreWeave’s stock has a consensus “Moderate Buy” rating, with analysts divided on its potential. The company’s strong position in the AI infrastructure space and persistent demand keep optimism high, despite the stock trading above its average price target of $82.72.

Read more: Can CoreWeave Stock Hit $185 in 2025?