Goldman Sachs Upgrades $CRWV to Buy Despite Lowering Price Target to $106

Goldman Sachs analyst Gabriela Borges has upgraded CoreWeave ($CRWV) from Neutral to Buy, citing an attractive entry point following a sharp pullback, while trimming the firm's 12-month price target from $139 to $106. The revised target still implies approximately 73% upside from its Oct. 16 closing price of $61.39, after shares retreated roughly 56% from their May peak near $138.
The bank argued that open-market bond yields near 15% on CoreWeave's 2031 and 2032 debt overstate the company's borrowing distress, noting that new facility loans are largely collateralized by Nvidia ($NVDA) silicon and contracted revenue at substantially lower interest rates. Nvidia CEO Jensen Huang recently noted that CoreWeave's cost of capital is decreasing, supporting the thesis that investors have overestimated balance sheet constraints while underestimating contract profitability.
Operational demand and institutional positioning remain robust across key metrics:
• CoreWeave secured approximately $104 billion in future revenue backlog through long-term contracts with major AI labs and hyperscalers including Meta ($META) and OpenAI by the end of Q2 2026.
• GPU rental rates were raised by 25% in July and an additional 10% in October, reflecting persistent supply constraints for high-performance compute.
• Cathie Wood’s Ark Invest purchased roughly $25.8 million worth of $CRWV shares in mid-October, joining bullish stances maintained by Deutsche Bank, Jefferies, and JPMorgan ($JPM).
Despite Q2 revenue doubling to $2.575 billion, the cloud provider posted a $626 million net loss driven by $640 million in quarterly net interest expenses, underscoring ongoing execution risks for the debt-financed AI infrastructure builder.