CoreWeave (CRWV) Soars 15.65% as Tech Momentum Meets AI Growth Potential Amid Risks

Technical Analysis

CoreWeave (CRWV) closed at $162.10 on June 9, 2025, marking a significant intraday jump of 15.65%. The stock showed strong buying momentum, trading near its 52-week high of $166.63 and well above both its 50-day and 200-day moving averages, which converge at $68.56. The Relative Strength Index (RSI) is at 71, indicating an overbought condition but still within reasonable limits of momentum persistence. The MACD at 28.63 (3-month) supports bullish momentum, while the Average True Range (ATR) of 9.36 suggests elevated volatility. Immediate support sits at $150.48, with key resistance identified near $163.10, just below today's high of $163.29. A stop-loss level is suggested at $155.96 for risk containment. Volume at 29.39 million surpassed the average 22.0 million, confirming strong interest.

For the next trading day (June 10), given the current momentum and volume surge, CRWV is poised to test the resistance at $163.10 again, potentially breaking through to approach or match the yearly high. Volatility might increase, with pullbacks likely near resistance before any sustained breakout.

Over the upcoming week, short-term price action will likely remain bullish but oscillate around overbought conditions. Consolidation above $150 is expected if the stock maintains momentum, otherwise, a correction to this support zone could occur. The technical setup is consistent with a strong trend but bears caution due to RSI and elevated ATR.

Fundamental Analysis & Intrinsic Value

CoreWeave operates in a rapidly expanding artificial intelligence infrastructure sector, where demand is surging. Despite robust market interest, the company posts a trailing twelve months (TTM) EPS of -$2.54 and a negative PE of -63.82, reflecting ongoing operational losses and investment in growth rather than profitability. The market capitalization stands at approximately $77.80 billion, indicating substantial investor valuation relative to earnings.

Analyst consensus reflects a target price median of $53.00 with a high estimate of $85.00, suggesting that Street valuations remain conservative compared to the current price. This discrepancy likely stems from aggressive growth pricing and market enthusiasm, especially given CoreWeave’s positioning in AI, often touted as a multi-year growth story.

Intrinsic valuation remains challenging without profitability; however, the market's pricing factors in considerable growth potential and future cash flow generation as AI adoption expands. The earnings announcement set for August 13, 2025, represents a catalytic event for reassessing fundamentals based on possible operational progress.

Long-term, CoreWeave’s sector exposure to AI infrastructure offers significant tailwinds, potentially justifying premium valuations if the company can demonstrate improving margins and sustained revenue growth. The stock’s IPO and subsequent rise of over 251% indicate sizable investor confidence, yet volatility and negative current earnings highlight risk for fundamental investors.

Overall Evaluation

CoreWeave blends strong technical momentum with a high-growth fundamental narrative but carries elevated risk due to unprofitable operations and stretched valuations. Considering the technical breakout potential balanced against the negative earnings and conservative analyst targets, CRWV aligns as a Hold candidate. It remains attractive for growth-oriented investors anticipating continued AI sector momentum but caution is warranted until profitability or more definitive earnings improvements materialize.