Shares jumped as Bank of America handed CoreWeave its most prominent Wall Street endorsement in months, reinstating coverage with a Buy rating and a $100 price target—just as the AI infrastructure builder fights to prove it can turn explosive revenue into actual profit.

  • A Big-Name Stamp of Approval, With a Premium Price Tag

BofA cited strong demand for AI compute and the company's growing list of high-profile partners, including Nvidia and OpenAI.

The firm values CoreWeave at 21 times its estimated 2027 operating earnings, well above the peer average of 16 times. That premium bet assumes CoreWeave can keep outgrowing competitors. The broader analyst consensus—32 analysts with an average target of $120.79—suggests BofA's call is actually conservative. But at least one analysis flags the stock as overvalued relative to its fair-value estimate, creating tension with the bullish thesis.

  • A $66.8 Billion Order Book Sounds Huge—If You Can Finance It

CoreWeave's revenue backlog grew to $66.8 billion, more than four times where it began the year, while full-year 2025 revenue hit $5.1 billion—a 168% surge.

Management is guiding for $12–$13 billion in 2026 revenue. The catch: interest expense more than doubled year-over-year in Q4 to $388 million , and net losses widened to $1.17 billion in fiscal 2025. Filling that backlog requires billions more in GPU purchases and data-center construction, all funded by debt.

  • Short Sellers Aren't Convinced

Short interest rose 13.9% in recent reporting periods, with 55 million shares sold short—16.5% of the available float. That heavy bearish positioning reflects real skepticism about whether the company can service its debt load and convert contracted revenue into free cash flow. Bernstein started coverage with an Underperform rating, citing concerns about future market dynamics.

  • The Supply Crunch Is CoreWeave's Best Friend—For Now

BofA analyst Tal Liani said capacity shortages in compute, power, and related resources appear likely to persist, with the supply-demand imbalance not easing before 2029. That runway matters: as long as demand outstrips supply, CoreWeave has pricing power. Nvidia reinforced its commitment with a $2 billion private investment in January at $87.20 per share —almost exactly today's price—giving the chip giant direct skin in CoreWeave's success. The risk is that big-tech customers eventually build their own infrastructure and stop renting CoreWeave's.