JP Morgan Analyst Optimistic About CoreWeave’s Future
JP Morgan analyst Mark Murphy remains positive about CoreWeave (CRWV) ahead of its revenue release, expected after the market closes on Tuesday, August 12th.
Today, there’s a notable focus on AI infrastructure companies, particularly since the lockup period, during which insiders are restricted from selling their stocks following the IPO, concluded on Thursday, August 14th.
CoreWeave stocks proved to be a profitable investment back in 2025. Initially priced at $40 for its IPO, the stock price surged to $139 shortly after, reflecting a hefty return of about 250% in less than five months.
Murphy has kept his “overweight” rating for CRWV, highlighting a significant $12 billion AI data center deal announced earlier this year with OpenAI.
In a research note shared with clients, he mentioned, “We believe that the opportunities at CoreWeave Inc are likely more substantial and perhaps more surprising for investors.” This suggests there could be greater potential than initially anticipated.
JP Morgan has released a favorable memo regarding CRWV stock, viewing the company’s long-term outlook for AI as “clear” and “unharmed.” They anticipate continued growth in the business pipeline during the latter half of 2025.
It’s worth noting that CoreWeave stocks are currently targeting a price-to-sales (P/S) ratio exceeding 22 times. While this is notably lower than NVIDIA (NVDA), the multiples may still seem inflated, especially as many AI infrastructure firms are yet to become profitable. The expected loss is around $0.49 per share for the second quarter.
Furthermore, with the lockup period ending soon, insiders and early investors might be inclined to sell off a large number of CRWV shares. Given the recent growth in AI stocks, this could significantly impact the stock price.
Some analysts on Wall Street are advising caution with CoreWeave stocks at their current levels, suggesting that potential investors take a careful approach.
According to Barchart, the consensus rating for CRWV is currently “pending,” with an average target around $96, indicating a possible downturn of over 30% from the present price.
