I think CoreWeave is undervalued, they're in a position to rocket higher as we have a massive compute shortage.
1. NVIDIA owns a little over 11% of CoreWeave. This is a huge vote of confidence and this makes them a majority shareholder. Jensen is a AI visionary and has direct say in how the company operates, this should make any doubtful shareholders relax. If CoreWeave has any issues or needs service, Nvidia will prioritize them over anyone else. Anytime there is a new release of GPU's, CoreWeave will get priority shipments, support and access.
2. Massive multi-billion dollar revenue hyper growth: they've had multi-billion-dollar scale with triple digit year over year revenue growth. More contracts are coming.
\-Meta Platforms: An expanded $21 billion agreement providing dedicated AI cloud capacity through December 2032, incorporating early deployments of Nvidia’s Vera Rubin platform.
\-OpenAI: Multi-stage commitments totaling over $22 billion, including an initial $11.9 billion contract and subsequent multi-billion dollar expansions to supply massive GPU capacity.
\-Nvidia: A $6.3 billion backstop and capacity agreement where Nvidia agreed to purchase unsold cloud compute capacity through April 2032, running alongside multi-billion dollar equity investments and strategic hardware alignments.
\-Jane Street: A $6 billion multi-year AI cloud compute commitment paired with a $1 billion equity investment to power machine learning for quantitative trading.
\-Anthropic & Perplexity: Multi-year production-scale agreements to run Claude inference and high-demand search workloads on CoreWeave's specialized GPU cloud.
3. The widespread compute shortage serves as the primary catalyst for CoreWeave’s explosive growth, transforming a specialized GPU cloud provider into a critical pillar of the artificial intelligence infrastructure landscape. To navigate the shortage, CoreWeave introduces structured options like Flex Reservations and Spot instances alongside baseline contracts. This allows them to monetize every single idle cycle and maximize cluster efficiency, driving higher margins while keeping desperate AI developers tightly anchored to their ecosystem.
[https://am.jpmorgan.com/us/en/asset-management/institutional/insights/market-insights/market-updates/on-the-minds-of-investors/is-ai-running-out-of-compute/](https://am.jpmorgan.com/us/en/asset-management/institutional/insights/market-insights/market-updates/on-the-minds-of-investors/is-ai-running-out-of-compute/)
[https://finance.yahoo.com/technology/article/openai-president-greg-brockman-we-will-remain-in-this-compute-shortage-no-matter-what-155249677.html](https://finance.yahoo.com/technology/article/openai-president-greg-brockman-we-will-remain-in-this-compute-shortage-no-matter-what-155249677.html)
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The bottom line is the compute shortage will benefit CoreWeave substantially. They also have the benefit of Nvidia backing them up. i believe the stock is cheap.
Here is a quick breakdown of the broader analyst forecasts:
* **Average Price Target:** $131 to $148
* **Highest Price Target:** $303 to $310
* **Lowest Price Target:** $36
* **Consensus Rating:** Moderate Buy / Buy
