CoreWeave Shows Strong Technical Momentum Amid Valuation Concerns: A Hold for Investors

Technical Analysis

CoreWeave (CRWV) closed at $148.97 on June 12, 2025, down 0.49% but maintaining a strong uptrend. The stock traded within a daily range of $142.51 to $154.80, near its short-term resistance level at $150.48. The 14-day RSI at 65 signals bullish momentum with limited overbought risk, while the MACD over three months at 31.58 confirms upward momentum. The stock is well above both its 50-day ($76.91) and 200-day ($75.00) moving averages, underscoring sustained strength since its breakout from previous levels. ATR at 10.20 implies moderate intraday volatility. Volume (14.98 million) is below the 22.13 million average, suggesting a possible pause or consolidation. A stop-loss set near $140.48 reflects a technical floor, supported further by a secondary support at $135.05.

For the next trading day (June 13), technical signals suggest a likely test of the $150.48 resistance. A breakout above this level could fuel a short-term rally; failure to break resistance may induce sideways or slight pullback action toward the stop-loss range.

Over the upcoming week, the stock’s momentum may remain intact, supported by favorable technicals and recent news catalysts. However, a cooling off at resistance could lead to consolidation between $140 and $150.

Fundamental Analysis

CoreWeave’s market capitalization stands at $71.50 billion, reflecting significant growth given the stock’s year low of $33.52 and a year high near $166.63. Despite impressive price appreciation, trailing twelve months EPS remains negative at -$2.54, with a negative trailing P/E of -58.65, indicating that profitability is not yet achieved. The company is evidently in a growth and investment phase typical of high-potential AI infrastructure stocks.

Recent strategic partnerships—including a major $7 billion AI data center tie-up with Applied Digital and engagement with Google’s cloud service to support OpenAI computing—position CoreWeave as a strong emerging player in the AI tech ecosystem. News highlighting collaborations with leading tech firms adds tangible growth prospects and validates business scalability.

Analyst targets, however, are conservative with a median near $53 and a consensus high of $85, likely reflecting caution about current valuation robustness and near-term earnings uncertainty. The current market price of approximately $149 substantially exceeds these targets, emphasizing disconnect between growth expectations baked into the stock price and analysts’ risk assessments.

Intrinsic value, based on current fundamentals and analyst consensus, appears lower than market price, suggesting overvaluation in the short to intermediate term. Long-term potential remains significant if CoreWeave can transition to profitability and capitalize on AI infrastructure demand, but execution risks and the negative earnings profile temper immediate valuation optimism.

Price Outlook

- Next trading day: Likely to test resistance at $150.48 with possible minor pullback; momentum and news flow support a positive bias.

- Upcoming week: Potential continuation of consolidation or moderate bullish breakout if volume supports strength; volatility remains elevated.

Intrinsic Value and Long-Term Investment Potential

CoreWeave’s current valuation implies high-growth expectations with a premium that rests heavily on future profit realization. Without positive EPS trends, intrinsic value estimates lag market price, suggesting caution. If the company achieves sustainable earnings growth and expands key partnerships, it could unlock substantial long-term value. The stock fits a growth-oriented profile with elevated risk and volatility, best suited for investors with high conviction in the AI sector’s expansion and CoreWeave’s execution.

Overall Evaluation

Categorized as a Hold candidate.

The stock’s strong technical momentum, strategic partnerships, and sector tailwinds justify maintaining exposure, but stretched valuation relative to fundamentals and negative earnings require caution. Near-term upside exists but is accompanied by volatility and potential for consolidation. The hold classification reflects balancing strong growth prospects against fundamental risks and elevated price levels.