CoreWeave stock price target raised to $99 from $91 at Morgan Stanley

CoreWeave reported robust Q3 2025 revenue growth of 134% year-over-year, exceeding forecasts, driven by strong generative AI contracts and customer diversification, prompting Morgan Stanley to raise its price target despite current trading suggesting potential overvaluation. However, the company also disclosed operational challenges, including deployment delays that led to an $8.5 billion reduction in FY2025 capital expenditure guidance, resulting in mixed analyst reactions with some firms lowering price targets due to timing issues while others maintain positive ratings, underscoring the critical importance of consistent execution in the constrained GPU infrastructure market.

Analysis

CoreWeave (CRWV) reported strong Q3 2025 results, with revenue up 134% year-over-year to $1.365 billion, exceeding forecasts of $1.286 billion. The company also narrowed its loss per share to $0.22, better than the anticipated $0.57. This performance, coupled with projected 174% FY2025 revenue growth and customer diversification, validates its strategic positioning in the generative AI GPU infrastructure market.

Despite robust growth, CoreWeave faces operational headwinds, including deployment delays with a third-party vendor, leading to an $8.5 billion reduction in its FY2025 capital expenditure guidance. Analyst reactions are mixed: Morgan Stanley raised its price target to $99 but maintained Equalweight, noting potential overvaluation. Mizuho and Evercore ISI lowered targets due to timing issues, while Jefferies maintained a Buy rating despite delays. DA Davidson reiterated an Underperform rating with a $36 target, citing profitability concerns.

This divergence underscores the critical need for consistent execution in the constrained GPU infrastructure market. While CRWV has seen a 164% YTD gain, its recent 8.76% weekly decline reflects market sensitivity to these operational challenges. Proving the durability of its business model and expanding software capabilities will be crucial for sustained investor confidence.

Key Decisions for Investors

• Investors should closely monitor CoreWeave's execution on provisioning and operating GPU infrastructure, specifically the resolution of deployment delays and the deployment of its revised capital expenditure.
• Consider the mixed analyst sentiment and the stock's current trading price relative to Morgan Stanley's $99 price target, which suggests potential overvaluation despite strong growth metrics.
• Evaluate the long-term thesis for CoreWeave within the generative AI GPU market, recognizing that a significant pullback could present an entry point for investors with longer horizons, as suggested by Morgan Stanley.