New CoreWeave Price Target After $14 Billion Meta, Nvidia Deal Turns Heads

At precisely 08:30 ET on Tuesday morning, Bloomberg News ran a story. The shares of CoreWeave (CRWV)  immediately ran more than 10% higher. 

According to the report, CoreWeave has signed a deal to supply Meta Platforms (META)  with up to $14.2 billion worth of AI-focused computing power. As part of this agreement, CoreWeave will provide the social media/AI giant with access to Nvidia's (NVDA)  GB300 systems. Nvidia and Meta were both up very small ahead of the opening bell, not necessarily reacting to the news. No firm involved has made a public comment on the deal as of this writing.

This grows CoreWeave's list of high-profile clientele. Microsoft (MSFT)  had been the firm's largest customer. Just a few weeks ago, CoreWeave expanded an agreement with OpenAI to expand an initial agreement with a contract value of up to $11.9 billion up to approximately $22.4 billion. CoreWeave and OpenAI are both backed by Nvidia, while OpenAI is backed by Microsoft as well. Despite all of the large numbers being thrown around, this does have some kind of an unholy family reunion feel to it.

Wall Street

On Tuesday morning, analyst Amit Daryanani of Evercore ISI, who is rated at five stars (out of five) by TipRanks, initiated an "Outperform" (buy-equivalents) rating on the shares of CoreWeave with a $175 target price. Daryanani is not "just" a five-star analyst. TipRanks rates him at number 76 of the 10,050 sell-side analysts that they cover.

Last week, four-star rated Ben Reitzes of Melius Research upgraded CRWV from a hold to a buy while taking his target price to $165 from $128. Additionally, Michael Turrin (four stars) of Wells Fargo upgraded the stock from "equal weight" to "overweight" (hold equivalent to buy equivalent), while increasing his target price from $105 to $170. On top of that, Gregory Miller (four stars) of Citizens JMP, reiterated his "buy" rating and his Wall Street high $180 target.

Managing the Data Center

CoreWeave considers itself to be a cloud/AI infrastructure technology company. The CoreWeave Cloud Platform consists of both software and cloud services that deliver efficiencies and automation that are able to help manage complex infrastructures required to develop and run AI workloads. The firm is knee deep in both large language model training and inference which is crucial to the generative and agentic sides of AI, which is the future of how AI is eventually monetized. I could go into much greater depth on this, but you get the idea.

The last thing you need is high-end geeky tech talk being explained to you by someone who is reading it as he explains it. That said, in a number of ways, CoreWeave is a competitor to the major cloud services providers. That said, and I could be wrong, in terms of providing GPU cloud solutions and high-end performance computing to elite level clientele, I see Oracle (ORCL)  as a primary rival.

The Chart​

​I see several reasons to have gotten long these shares on the chart. Of course, CRWV is now up 12.6% as I type, so maybe I just catch my breath, instead of getting all fired up. I have to ask, do you see what I see? I see a falling-wedge pattern of bullish reversal. I see a double-bottom pattern of bullish reversal. These both come just after the shares sold off from mid-June into early September.

That said, the shares are already 64% off of their recent low. So, have the horses left the barn? Well, the 21-day EMA recently crossed above the 50-day SMA. This is known as the swing trader's or mini-golden cross and is considered bullish and yes, the algorithms that control everything do see this. Most importantly, about two weeks ago, the stock took back its 50-day SMA and held the level. That forced professional managers in the name to increase long-side exposure. That was the pivot.

Based on a pivot running close to $111, I would probably place my target price at $139. Oh, look, CRWV is trading at $139. What does that mean? 

It means that even though I would like to be long CRWV going forward, the stock is likely, for me, a short-term short trade idea. I will be shorting a few shares after this article is public information. My target will be the 21-day EMA. My panic point will be an 8% loss on the trade.

At the time of publication, Guilfoyle was long NVDA and MSFT equity.