Woven Into the Bull Case

Bank of America Global Research reinstated coverage of CoreWeave $CRWV ( ▲ 1.29% ) with a Buy rating and a $100 price target. Analyst Tal Liani anchored the call on one thesis: demand for AI infrastructure is solid, and CoreWeave is built to capture it.

"CoreWeave is well positioned to capture share of the $79 billion AI infrastructure as a service market," Liani wrote. "While risks exist, we believe the demand trajectory is solid in the foreseeable future."

Alphabet, Microsoft, Meta, and Amazon have committed nearly $700 billion in combined capex to build new AI data centers. CoreWeave's proprietary software, optimized for AI workloads, gives it a structural edge on competitors to capitalize on that spend, according to BoA.

Strategic alliances with Nvidia and OpenAI add to the picture. Liani expects the company to benefit from GPU deliveries, new data center energization, reserved-capacity signings, and continued refinancings over the next 12 months. Over a 12 to 24-month horizon, the firm looks for improving returns on invested capital, evidence of pricing durability at renewal, and signs of platform sustainability.

CoreWeave issued Q1 guidance of $1.9 billion to $2 billion, below the $2.29 billion LSEG consensus. Shares fell sharply in extended trading that day. Liani's reinstated Buy comes in the wake of that selloff.

BoA's call puts it in line with the broader consensus. Of 35 analysts covering the stock, 20 carry a Buy or Strong Buy rating. CoreWeave has outpaced the broader market year-to-date, even as geopolitical uncertainty weighs on equities.

Light Q1 guidance sent the stock lower. BoA sees a setup, not a ceiling.