CoreWeave Shows Strong Momentum and Growth Potential Amid AI Boom: A Buy Candidate Analysis

Technical Analysis

CoreWeave (CRWV) closed at $140.16 on June 6, 2025, marking a 3.78% gain from the previous session. The stock trades significantly above its 50-day and 200-day moving averages, both at $68.56, indicating strong upward momentum since its IPO at $40 in March 2025. The Relative Strength Index (RSI) sits at 68—approaching overbought territory but still below 70—suggesting continued buying interest though caution is warranted for potential short-term pullbacks. The MACD at 27.26 signals strong bullish momentum over the past three months. Average volume (22.01 million) slightly trails current trading volume (22.97 million), confirming heightened market interest.

Support is identified near $135.05, with resistance at $150.48, placing the stock in a cautiously optimistic range. The average true range (ATR) of $10.39 reflects notable intraday volatility. A stop-loss level at $132.96 provides a technical floor for risk management. For the next trading day (June 9), the price is expected to hold above support and test the resistance zone, likely trading within a $135-$150 band. For the upcoming week, the momentum and volume trends favor continued appreciation barring a market-wide correction or negative catalysts.

Fundamental Analysis

CoreWeave operates as a leading AI hyperscaler with strong competitive positioning bolstered by extensive data center infrastructure and multi-year recurring revenue contracts. Despite a negative trailing twelve months EPS of -$2.53 and a negative PE ratio of -55.40, rapid top-line growth and strategic alliances with dominant AI entities like OpenAI underpin promising scalability and revenue acceleration. CoreWeave is still in a capital-intensive growth phase with heavy CAPEX impacting near-term profitability but projected gradual margin improvement through fiscal 2028.

Market capitalization stands at $67.27 billion, reflecting significant investor enthusiasm reflective of its market niche rather than current earnings. Analysts’ consensus target median price is $53, with a range between $36 and $85, potentially reflecting traditional valuation metrics lagging the stock’s growth trajectory. Analyst sentiment is bullish with 4 buys and 3 holds, no sell ratings, and the consensus leaning toward a buy stance driven by the company’s expanding role in AI infrastructure. Recent news highlights booming demand for AI workloads, confirming sustainable growth prospects.

The intrinsic value remains difficult to estimate precisely due to negative earnings and evolving profitability dynamics. However, the firm’s network effects, recurring contracts, and expanding AI market penetration suggest high long-term value beyond current multiples. From a long-term investment perspective, CoreWeave is positioned as a growth play subject to execution risk but backed by structural AI tailwinds and industry validation.

Intrinsic Value and Long-Term Outlook

Current valuation metrics do not align with traditional intrinsic value models due to losses and negative earnings ratios. Intrinsic valuation would need to incorporate forecasted revenue growth rates exceeding 30-40% annually and margin expansion expected by FY28. Assuming successful execution, the core AI cloud infrastructure market is forecast to expand substantially, suggesting intrinsic value upside potential beyond the $140 current price level.

Long-term investors targeting CoreWeave should consider the company’s disruptive position in the AI hyperscaling segment, multi-year contract visibility, and rapid industry adoption as key factors supporting future intrinsic value appreciation. However, capital expenditure intensity and earnings volatility underline the necessity for a multi-year horizon and tolerance for valuation swings.

Overall Evaluation

CoreWeave exhibits strong technical momentum and solid fundamental growth potential within a booming AI infrastructure market. While earnings remain negative and valuation metrics stretched by conventional standards, the stock’s market capitalization and recent price appreciation reflect the underlying future cash flow possibilities embedded in the company’s growth narrative. The consensus analyst stance is a buy, supported by multiple positive catalysts including large enterprise contracts and sector-wide AI demand expansion.

Given the current technical indicators, market sentiment, and fundamental outlook, CoreWeave is best classified as a Buy candidate for investors with a growth appetite and a long-term perspective. Near-term price action suggests continued strength, with prudent risk controls advised given elevated valuation and volatility levels.