CoreWeave Stock Rises: Wells Fargo Lifts Target To $170 On Surging AI Demand

Sep 24 CoreWeave CRWV edged higher about 1% in premarket trading on Wednesday after Wells Fargo lifted its rating to Overweight from Equal Weight and raised its price target to $170 from $105. The bank's analysts, led by Michael Turrin, said demand trends for AI computing are too strong to ignore.

Wells Fargo highlighted that CoreWeave stands apart from much of the software sector, which still waits for AI monetization to take hold. The analysts believe CoreWeave benefits immediately from an accelerated infrastructure build cycle and industrywide shortages expected to last into 2026.

Their bullish call rests on several factors: stronger-than-expected AI demand, particularly from hyperscalers, and recent bookings linked to AI labs across the sector. Updated assumptions also reflect better economics, with GPU-hour pricing now modeled at $2.50 versus $2.00 previously. Additionally, Nvidia (NVDA) provides a contractual backstop for unused compute, which analysts expect will support margins.

They also cited the growing clientele of CoreWeave, attractive financing conditions and a vertically integrated nature of its strategy that has the capacity of boosting the profitability in the long end. Although the overall market movement of AI is still unpredictable, Wells Fargo is of the opinion that CoreWeave is well-positioned to grab large portions.