CoreWeave Stock Surges 7.99% as Intraday Momentum Builds Amid Valuation Concerns

Technical Analysis

CoreWeave (CRWV) closed at $120.20 on June 2, 2025, posting a strong intraday gain of 7.99%. The stock demonstrated a sharp uptrend, trading within a daily range of $114 to $123.66, approaching the immediate resistance level of $123.97. Volume surged to 52.98 million, well above its average of 19.89 million, signaling robust investor interest and momentum. The Relative Strength Index (RSI) stands at 77, indicative of overbought conditions, which often precede short-term pullbacks or consolidation. However, the Moving Average Convergence Divergence (MACD) remains notably positive at 20.00 over three months, supporting continued bullish momentum. Both the 50-day and 200-day moving averages sit at $61.57, well below the current price, confirming a strong long-term upward trajectory. Average True Range (ATR) at approximately $9.45 suggests elevated volatility but sustained price action range.

For the next trading day (June 3), the stock is likely to test the resistance near $124, with a modest risk of retracement due to high RSI and short-term overextension. Support lies near $114.87 (stop-loss level) and secondary support at $107.39. Over the coming week, given the confirmed demand surge via data center lease news, expect continued positive momentum with possible intraweek consolidation around the $120-$125 range before the next significant catalyst: the earnings announcement scheduled for August 13, 2025.

Fundamental Analysis

CoreWeave’s market cap stands at approximately $72.2 billion, reflecting substantial growth since IPO. However, trailing twelve months (TTM) earnings per share (EPS) are deeply negative at -$2.54, with a negative price-to-earnings ratio of -59.24, emphasizing the company’s current lack of profitability. This is not unusual for a high-growth AI infrastructure firm reinvesting aggressively in capacity expansion. The recent $7 billion, 15-year lease agreement with Applied Digital represents a major long-term contractual underpinning for revenue visibility and infrastructure scaling, signaling confidence from large enterprise partners and hyperscalers.

Intrinsic valuation by consensus target prices, however, reveal a stark contrast: the median analyst target price is $53.00, substantially below the current market price, indicating expectations of potential overvaluation in the near term. Target highs average $85.00, while target lows extend as low as $36.00. Analyst sentiment, nonetheless, remains generally positive, with four buy and three hold ratings and zero sell ratings, culminating in an overall "Buy" consensus.

Intrinsic Value and Long-Term Investment Potential

The significant gap between intrinsic value estimates and current market price suggests an overheated valuation driven predominantly by speculative growth expectations around AI infrastructure demand and strategic partnerships with firms like Nvidia and Applied Digital. Long-term value creation depends heavily on CoreWeave’s ability to convert infrastructure leases into scalable, profitable revenue streams and eventually achieve positive earnings. The company’s strategic positioning in AI cloud infrastructure, coupled with Nvidia’s technical and financial backing, strengthens its potential to dominate a critical and rapidly growing market. Yet, intrinsic valuation implies a cautious lens; growth must materialize substantially to justify present multiples.

Over extended timeframes, CoreWeave may present compelling upside if operational execution aligns with current growth projections and AI market demand continues unabated. However, the high volatility and current losses necessitate robust risk management and due diligence.

Overall Evaluation

CoreWeave currently exhibits strong technical momentum and high investor interest fueled by transformational lease agreements and industry tailwinds. Despite the overbought technical indicators in the short term, the company's foundation in AI infrastructure and strategic partnerships support a bullish medium-term outlook. Nevertheless, underlying negative profitability and a large divergence between market price and intrinsic value estimates indicate valuation risk.

Considering these factors, the stock can be categorized as a Hold candidate. The bullish technical signals and positive growth narrative support maintaining a position, but intrinsic valuation concerns and negative earnings counsel prudence. The stock may experience volatility and potential price corrections before fundamental performance improves. Close monitoring of trading activity, upcoming earnings, and incremental revenue recognition from signed lease agreements will be critical for revising outlooks going forward.