Buy this AI cloud stock ahead of earnings, says Citi
Citi is optimistic heading into CoreWeave’s next earnings report next week. In a Tuesday note, the bank maintained its buy rating on the cloud computing stock and raised its price target to $192 per share from $164. This revised forecast represents upside of 52%. Analyst Tyler Radke pointed to rising artificial demand as a tailwind for CoreWeave. CRWV YTD mountain CRWV YTD chart “In the near term, we see CRWV as one of the larger AI beneficiaries across our coverage. With recent deals signed with NVDA, META and an OpenAI expansion, we estimate ~85% QoQ backlog growth,” he wrote. “As Blackwell + customer ramps come online in 4Q, we expect a revenue reacceleration into year-end and outsized (~$100M+) revenue beats.” The analyst added that it seems demand will only increase from here. He sees a “strong possibility” for it to accelerate next year with a “safer strategy” stemming from management’s drive to diversify its customer base and sign longer contracts of between five-to-six years. “Our concerns around customer concentration are waning as MSFT/OpenAI become smaller backlog contributors with the addition of META and NVDA (who will backstop capacity intended for start-ups),” Radke wrote. “This, coupled with strong AMZN results, MSFT’s outsized short-term bookings capex strength and continuing capacity constraints give us confidence in the AI compute ecosystem.” CoreWeave reports its third-quarter earnings after the market closes on Monday. Given this strong AI demand and high visibility on noncancellable contracts, Radke expects CoreWeave is set up for continued large revenue beats through the second half of this year, to the tune of $100 million or over. By the latter part of the 2026 fiscal year and beyond, the analyst forecasts “significant profitability improvements” for the company. CoreWeave went public in March. Since it’s IPO, it has surged nearly 216%.
