DA Davidson upgraded CoreWeave (NASDAQ:CRWV) from Neutral to Buy and lifted its price target to $110.00 from $68.00. The firm framed the move around what it sees as an improving demand backdrop for compute and a rising probability of events in 2026 that would materially reduce some of the company’s principal risks.
Shares of CoreWeave were trading at $105.49 at the time of the report, having declined 8.15% over the past week while still delivering a 132.45% total return over the last year. DA Davidson’s reassessment reflects its view that upside potential now outweighs the downside that is already reflected in the company’s current market valuation.
On valuation metrics, InvestingPro data cited by the analyst shows CoreWeave trading slightly above its Fair Value and carrying elevated multiples, including a Price/Book ratio of 11.95. The firm stressed that high multiples are part of why substantive de-risking events will be required for a sustained re-rating higher.
DA Davidson characterized CoreWeave and similar "neocloud" providers as heavily concentrated on a narrow set of future compute demand outcomes. The firm said that while those outcome dependencies remain, the probability of de-risking events - which would reduce perceived counterparty risk and address capital-structure concerns - increases materially in 2026. In DA Davidson’s view, such events would be key to enabling CoreWeave to re-rate sustainably.
Financially, CoreWeave is forecasted to grow revenue by 166% in fiscal year 2025, according to the data referenced by the analyst. The company, however, remains unprofitable on a trailing-twelve-month basis with diluted earnings per share of -$2.32.
DA Davidson’s upgrade sits alongside a mix of opinions from other large banks and brokers. JPMorgan has maintained a Neutral stance, pointing to continued strong demand for AI-related compute capacity but also noting site delays and a shift by customers toward longer contract durations - from three years to five to six years. Goldman Sachs initiated coverage with a Neutral rating and a $86.00 price target, calling out CoreWeave’s competitive position in the AI compute market. Truist Securities began coverage with a Hold rating and a $84.00 price objective, likewise acknowledging the company’s role in serving major AI labs and enterprises.
Recent corporate developments and partner commitments were also highlighted as context for the sector outlook. Nvidia has invested $2 billion in CoreWeave to support the construction of over 5 gigawatts of AI computing infrastructure by 2030, reflecting strong demand for AI compute resources. CoreWeave has announced plans to integrate NVIDIA Rubin technology into its AI cloud platform to better service agentic AI and large-scale inference workloads, with deployment expected in the second half of 2026.
Despite the constructive signals on demand and strategic partnerships, DA Davidson emphasized that CoreWeave is unlikely to sustain a multiple expansion without visible reductions in both counterparty and capital-structure risks. That caution underpins the firm’s view that near-term upside is tied to specific de-risking catalysts while the stock already embeds significant expectations.
Overall, DA Davidson’s upgrade reflects a more bullish stance on the medium- to long-term artificial intelligence trajectory and the resulting demand for specialized compute, balanced against the company’s current valuation and profitability profile. Market participants and investors will be watching the timing and substance of the de-risking events cited by the firm, as well as the operational progress tied to the announced infrastructure build and technology integrations.
Summary
DA Davidson upgraded CoreWeave to Buy and raised its price target to $110, citing strengthening compute demand and a higher probability of de-risking events in 2026 that could address valuation and capital risks. The company is forecast to post 166% revenue growth in fiscal 2025 but remains unprofitable with a trailing diluted EPS of -$2.32. Other major banks have a mix of neutral and hold views while Nvidia’s $2 billion investment and planned Rubin integration were noted as supportive developments.