CoreWeave receives analyst coverage initiation with Buy rating from Bank of America.

Bank of America analysts have initiated coverage of CoreWeave (NASDAQ:CRWV), a leading AI datacenter platform, with a 'Buy' rating and a $42 price objective. The analysts believe CoreWeave is well-positioned to capture market share in the rapidly expanding AI Infrastructure-as-a-Service (IaaS) market, which is projected to reach $79 billion by 2028, growing at a 62% three-year compound annual growth rate (CAGR). The firm's purpose-built cloud platform, optimized for GPU compute, supports major AI players including Microsoft, OpenAI, and Nvidia.

Customer feedback positions CoreWeave as a best-in-class operator, with particular strengths in faster GPU deployment cycles, lower failure rates, and significantly higher utilization. Bank of America attributes these performance gains to the company's proprietary software stack, efficient data center designs including liquid cooling, and substantial access to power resources. The analysts emphasized that CoreWeave's proprietary software, which automates functions such as provisioning and load balancing, not only enhances infrastructure performance but also holds potential to evolve into standalone software revenue streams. "We believe these advantages are sustainable in the near term, at a time when demand for GPUs is accelerating," they wrote.

From a valuation perspective, CoreWeave's stock trades at 11.8x estimated calendar year 2027 earnings before interest and taxes (EBIT), below the 12.7x average for the broader datacenter peer group. In a bullish scenario, analysts forecast a five-year revenue CAGR of 52% and EBIT CAGR of 72%, driven by ramping AI demand and normalization of OpenAI-related capex by late 2025. Bank of America sees a healthy risk/reward profile for CoreWeave in the near-term, with long-term growth potential. Following the release of the report, shares of CoreWeave traded up 8.2%, closing at $38.