UBS Initiates 'Buy' Rating for CoreWeave Amid Rising AI Compute Demand
UBS has initiated a 'Buy' rating for CoreWeave (NASDAQ:CRWV) with a $120 price target, suggesting approximately 40% upside potential. The bank cited strong artificial intelligence compute demand as a key growth driver and noted that the current valuation of about three times expected 2027 revenue appears undervalued given positive market signals. UBS highlighted CoreWeave's reputation for reliability in AI infrastructure hosting, which differentiates it from competitors. It also expects GPU pricing trends to boost the company’s revenue per gigawatt over time. However, UBS warned of risks including high leverage needed to fund expansion and customer concentration, with three clients accounting for 72% of its revenue. Despite these concerns, UBS believes they are already reflected in CoreWeave's valuation and made a non-consensus positive call on the stock as part of a broader bullish stance toward AI-focused equities.
Tickers: $CRWV
Topics: AI Compute Infrastructure Equity Research Market Sentiment