“Wild, bumpy and volatile” – this is how an analyst describes the start of the stock exchange of the CoreWeave share. Nevertheless, some experts recommend the Nvidia partner for sale. That is behind it.
• CoreWeave share slips according to IPO under issue price
• Analysts still see strong growth potential
• Opportunities and risks at a glance
The CoreWeave share caused a lot of movement on the stock exchange. The American company, which specializes in cloud computing for artificial intelligence (AI), celebrated its IPO on the NASDAQ on March 28, 2025 at $ 39. Shortly after the IPO, the share shot to over $ 60, only to fall back to around $ 38 a little later. The decline did not come as a surprise: concerns about trading tariffs under the second Trump government and general uncertainty about AI investments are entitled to the industry.
But despite these course skipers, some analysts are surprisingly positive. You see a potential winner of the AI age in CoreWeave – and recommend the stock for sale.
The focus: Microsoft as a risk, Nvidia as a trump card?
A major criticism of CoreWeave is the strong dependence on Microsoft. According to the company, around 62 percent of the sales for 2024 forecast come from the tech giant Microsoft. This one -sided customer structure harbors risks such as analysts from Citi in accordance with Tipranks. The investment house awards a neutral rating for the share and warned: “We remain careful due to the considerable dependence on Microsoft. This dependence harbors risks because Microsoft has signaled a slowdown of its AI investments”.
However, according to other experts, this is also a strength of CoreWeave: the company delivers high-performance calculation capacities, which are particularly used for large AI models-with an infrastructure based on the powerful GPUs of Nvidia. According to Tipranks, citing Yahoo Finance sources, CoreWeave is one of the world’s largest owners of AI chips. According to Investing.com, JPMorgan estimates that the company has the fifth to sixth largest GPU pool.
CoreWeave share in mind: That is why analysts rely on long-term potential
Despite the risks mentioned, several investment houses are leveling the share as buying. A particularly optimistic view comes from Stifel, which according to Investing.com with $ 55 at a current price of $ 42.82 sees a potential of over 28 percent and sets the highest price goal (as of April 29, 2025).
Brent Thill, Analyst at Jefferies, is also evident: According to Tipranks, he expects a sparse potential to over 19 percent to $ 51 in the next twelve months (as of April 29, 2025). According to Tipranks, Thill justifies his assessment as follows: “Although there are concerns about the sustainability of CoreWeave’s business model, we believe that the insatiable hunger for AI calculation performance limits the downward risks”. The AI expansion is still in a very early phase and coreweave is in an ideal position to scale and take this opportunity.
JPMorgan analyst Mark Murphy also sticks to his purchase recommendation – albeit with more reluctance. According to Tipranks, his price target is only $ 43, which would mean a rather limited upward potential. He warns of a high volatility: “A variety of possible developments are conceivable at CoreWeave. Therefore, we expect the stock to take a wild, bumpy and volatile development, which requires risk to take risks that many investors may not have”.
Investors unsafe: growth fantasy meets risk
CoreWeave is a young listed company with a previously high price volatility. A significant part of the sales currently comes from a single major customer, which leads to an increased dependency. At the same time, CoreWeave acts in a growing market segment: the provision of computing power for applications in the field of artificial intelligence. Among other things, the company uses a large number of Nvidia GPUs and, according to estimates, is one of the world’s largest holders of corresponding hardware resources. It remains to be seen to what extent CoreWeave can convert this market position into sustainable growth.
Editor finance.net
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