CoreWeave Stock (CRWV) Moved to Neutral as Analyst Cuts Price Target

CoreWeave's stock (NASDAQ:CRWV) is seeing sentiment shift, as analysts adjusted their outlook on the AI infrastructure provider, leading to a price target reduction and a more cautious rating. The stock is currently trading at $69.17, down 4.4% as we complete the first hour of trading.

The shift in analyst sentiment follows a period of volatility for CoreWeave, driven by a combination of strategic developments, supply chain challenges, and concerns over customer concentration. 

Mizuho today lowered its price target on CoreWeave to $92 from $120, while maintaining a Neutral rating. This adjustment reflects broader target revisions within the software group, aligning with Mizuho's 2026 outlook.

The firm highlighted key trends benefiting software vendors, including artificial intelligence, data modernization, DevOps, next-generation security, and electronic design automation. While Mizuho anticipates revenue growth in the software sector, infrastructure capacity limitations at CoreWeave data centers factored into the lowered price target.

Mizuho's revised outlook aligns with a broader trend of analyst adjustments for CoreWeave. JPMorgan downgraded CoreWeave from “Overweight” to “Neutral,” reducing its price target to $110 due to delays caused by a third-party data center developer, impacting revenue projections for the fourth quarter.

HSBC downgraded CoreWeave to “Reduce,” setting a price target of $32, citing a concentration of revenue derived from Microsoft and concerns over rising costs. Needham also downgraded CoreWeave from “Buy” to “Hold,” citing valuation concerns despite the strategic advantages of acquiring Core Scientific.

Strategic Initiatives and Valuation

CoreWeave's strategic initiatives have included the acquisition of Core Scientific in an all-stock transaction valued at approximately $9 billion and a $14.2 billion deal with Meta to provide cloud computing capacity through December 2031. While the Meta deal initially boosted the stock, diversifying CoreWeave's client base, the aforementioned analyst downgrades reflect underlying concerns about the company's financial stability and growth prospects.

The acquisition of Core Scientific aimed to expand CoreWeave's data center capacity and vertically integrate operations. However, this move also raised questions about the company's valuation, particularly with Needham estimating a valuation of 41 times its 2026 EBIT. The company's valuation remains a key point of contention.