Jefferies has reiterated a Buy rating on CoreWeave (NASDAQ:CRWV), keeping its price target at $120.00, which the firm says represents about a 22% upside from prevailing levels. That outlook sits alongside market measures indicating the stock is trading near its Fair Value estimate despite a 145.8% total return over the past year.
The reinforcement of Jefferies’ view follows an expanded partnership with NVIDIA that is intended to help CoreWeave scale its AI computing footprint. Under the agreement, CoreWeave aims to develop in excess of 5 gigawatts of AI factories by 2030, a material increase from roughly 2.9 gigawatts of contracted power reported in the prior quarter.
NVIDIA’s role in the arrangement includes assistance with land and powered-shell procurement. Jefferies and company commentary indicate that this support should lower execution risk tied to greenfield site development and accelerate CoreWeave’s facility rollouts. The expanded collaboration also has a commercial dimension: NVIDIA will distribute CoreWeave’s software offerings, including SUNK and Mission Control, to its cloud service provider and enterprise customers, creating a potential asset-light revenue stream with higher margins and an additional channel for customer acquisition.
Financial momentum at CoreWeave has been pronounced. The company reported revenue growth of 235.4% over the last twelve months, and consensus forecasts cited in analyst notes point to 166% growth for the current fiscal year. Jefferies highlights what it sees as an attractive risk/reward dynamic, noting the stock trades at 12 times Jefferies’ rolled-forward EV/CY28 EBIT metric. For context, Jefferies compares that multiple to 17 times for Microsoft and 11 times for Oracle, and points to CoreWeave’s execution-driven trajectory and possible upside to estimates from growth in remaining performance obligation, or RPO.
As part of the strategic deepening, NVIDIA increased its equity position in CoreWeave to approximately 9%, up from about 7% at the time of CoreWeave’s IPO, by investing $2 billion. NVIDIA’s purchase of 22.9 million Class A shares at $87.20 apiece gives it roughly 9% ownership, a move market observers view as a signal of NVIDIA’s confidence in CoreWeave’s technical and operational capabilities and its strategic value to large AI customers.
Other brokerages responded to the investment announcement with bullish stances. Freedom Capital Markets reiterated a Buy rating with a $100.00 price target. DA Davidson upgraded its rating to Buy and raised its price target to $110.00, citing strengthening compute demand and upside potential. Needham expressed optimism about the long-term benefits of the NVIDIA tie-up for capacity expansion. At the same time, JPMorgan kept a Neutral rating with a $110 price target, even as it acknowledged strong demand for CoreWeave’s AI-related compute capacity.
Market commentary also notes evolving contract durations, with reported customer agreements extending from three years to five to six years, which reflects sustained demand for AI compute. Observers also flagged ongoing site delays as an operational risk, even as NVIDIA’s procurement support aims to mitigate some execution challenges.