JPMorgan raises price target on CoreWeave heading into earnings, says AI ramp is ‘intact’

JPMorgan analyst Mark Murphy raised CoreWeave's price target to $135 from $66, maintaining an overweight rating, ahead of its Q2 results, citing long-term AI growth potential anchored by its $11.9 billion, five-year OpenAI deal. While acknowledging "extreme volatility" due to booking "lumpiness" and buildout timing, Murphy remains bullish on the cloud computing stock's trajectory. This optimistic view contrasts with the majority of analysts, who hold a "hold" rating and a consensus target implying 22% downside.

Analysis

JPMorgan has issued a notably bullish and contrarian update on CoreWeave (CRWV), raising its price target to $135 from $66 while maintaining an overweight rating. The core of this thesis is the company's long-term potential within the artificial intelligence sector, substantiated by a significant $11.9 billion, five-year deal with OpenAI. However, the analyst, Mark Murphy, tempers this optimism with a significant caution regarding near-term performance, explicitly warning of "extreme volatility" in the shares. This volatility is attributed to the "extreme lumpiness" in the timing of large bookings and subsequent data center buildouts, making quarterly results difficult to predict. This perspective stands in stark contrast to the broader market, where 16 of 24 analysts surveyed by LSEG hold a neutral rating and the consensus price target of approximately $100 implies over 22% downside. Despite the stock's powerful 152% rally over the past three months, its recent 3% gain in the last month reflects the kind of volatility the analyst describes.

Key Decisions for Investors

• Long-term investors with a high tolerance for risk may consider the expected share price volatility an opportunity to build a position, aligning with the analyst's conviction in the multi-year AI growth narrative.
• Investors should be prepared for significant share price fluctuations and unpredictable quarterly performance driven by the irregular timing of large contract bookings, a key risk highlighted in the note.
• It is crucial to weigh JPMorgan's bullish, contrarian stance against the broader market consensus, where a majority of analysts maintain a hold rating and the consensus price target implies significant downside from current levels.