UBS is bullish on CoreWeave (CRWV.US): Initiates "Buy" rating, betting on the return of AI trading rotation.

According to information from Zhitong Finance APP, UBS has initiated coverage on the emerging cloud provider CoreWeave (CRWV.US) for the first time, assigning a "Buy" rating and setting a target price of $120.

UBS analyst Karl Keirstead wrote in a client report: "Although AI computing power demand signals are very strong and there is ample evidence that CoreWeave's revenue per GW indicator will continue to climb, market sentiment on Wall Street remains quite cautious (as reflected by its valuation being only three times the expected revenue for 2027)." He stated: "We understand these concerns (mainly leverage and credit risk), but believe these worries are peaking, so we have a more optimistic perspective than the market consensus, and initiate with a ‘Buy’ rating."

Keirstead further analyzed that investors may continue to adopt a "defensive" strategy towards AI-related stocks, but CoreWeave has built a solid reputation for reliability and exceptional performance, which should allow it to stand out among its peers. Keirstead added: "A bullish rating on CoreWeave stock is essentially a bet that investors will soon shift back to going long on AI trades. Considering the current muted sentiment, strong demand signals, and reports that frontier labs are growing, this scenario appears increasingly likely."

In contrast, Bernstein assigned CoreWeave an "Underperform" rating, with a target price of $74. Bernstein positions CoreWeave as a "transitional capacity provider": it benefits from the scarcity of power and GPUs, but faces concentrated customers, buyers inclined to build their own, and limited return structures. Once data center capacity eases, it will be the first and most severely impacted. Data shows CoreWeave’s Q2 2026 revenue at $2.58 billion (up 112% year-on-year), with a backlog of about $104 billion (up 246% year-on-year), and across-the-board price increases of about 25% in July.