Key Highlights BofA Securities maintained its Buy recommendation with a $140 price objective for CoreWeave (CRWV) Analysts increased their fiscal 2026 capital expenditure forecast to $34 bill
Shares of CoreWeave advanced 2.3% during pre-market hours on Sunday following BofA Securities’ reaffirmation of its bullish stance on the AI cloud infrastructure provider.
CoreWeave, Inc. Class A Common Stock, CRWV
Despite maintaining the $140 price objective, the stock remains significantly below that threshold. Currently valued at $73.21, CRWV has fallen 52% from its year-high of $153.20.
Prior to this bounce, the shares had declined 12% during the previous week, pressured by concerns about emerging competition as Meta and SpaceX were rumored to be expanding into cloud infrastructure services.
BofA analysts have increased their capital expenditure projection for CoreWeave’s fiscal 2026 to $34 billion, marking a substantial increase from the earlier $29 billion estimate. This revision reflects evolving trends in hardware infrastructure deployment and accelerating AI infrastructure requirements.
Regarding profitability metrics, BofA anticipates CoreWeave will deliver an operating margin of 2.4% during Q2 of fiscal 2026. This forecast falls modestly below the consensus analyst estimate of 2.8%.
However, the trajectory shows significant improvement as the year progresses. BofA anticipates margins will expand sequentially, climbing to 14.6% by the fourth quarter, a dramatic improvement from the 1.0% recorded in Q1. This anticipated margin expansion narrative seems to be restoring investor optimism.
For the full fiscal year 2026, BofA projects an earnings loss of $3.81 per share. Profitability is not anticipated during this fiscal period.
BofA specifically countered the prevailing competitive pressure concerns. The investment firm contends that the compute infrastructure market is not fundamentally competitive in nature, maintaining that AI compute demand substantially outpaces available supply.
BofA analysts emphasize that capacity availability — rather than vendor choice — represents the critical constraint in today’s market environment. This perspective challenges anxieties that Meta or SpaceX could substantially erode CoreWeave’s market share.
Several other research firms have expressed similar optimism. Wolfe Research confirmed its Outperform rating with a $150 target price. Rosenblatt upheld its Buy rating with an ambitious $250 price objective. Evercore ISI likewise maintained its Outperform designation at $150.
Notably elevated call options volume, especially concentrated in August expiration dates, indicates that traders are establishing positions anticipating a short-term stock recovery.
The broader equity market provided a favorable environment during the trading session. The Nasdaq climbed 0.6%, while the S&P 500 increased 0.3%, and the Dow Jones advanced 0.2%. This positive risk sentiment typically benefits high-volatility growth stocks such as CoreWeave.
The upward revision in BofA’s capex forecast indicates that institutional research teams continue to identify robust long-term demand for CoreWeave’s GPU-powered cloud infrastructure offerings.
With revenue recognition tied to incremental active computing capacity, BofA projects the company will demonstrate substantial operating leverage in the quarters ahead.
Later in the trading day, shares were changing hands at $76.73, reflecting a 4.81% gain.
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