CoreWeave, Inc. (NASDAQ:CRWV) is one of the AI Stocks Gaining Attention on Wall Street. On January 6, Truist Securities analyst Arvind Ramnani initiated coverage on the stock with a Hold rating and an $84 price target. Despite the cloud service provider’s revenue gains and high-end clients, the firm believes that CRWV suffers from lofty leverage and high capital expenditure requirements.
CoreWeave, a leading provider of cloud services purpose-built for AI, has a strategic partnership with Nvidia. It also counts several notable names among its customer base, including OpenAI, Microsoft, Meta, and Google.
“The NVIDIA partnership is vital as it ensures access to GPUs – NVDA is a ~7% owner of CRWV and committed to buy up to $6.3B of any unsold capacity by CRWV through April 2032, providing a long-term revenue backstop.” -Truist analysts, led by Arvind Ramnani.
However, the firm also flagged how only a few revenue sources, tied to one or two customers, creates risks for the company.
“Last year, the company generated 77% of its revenue from its two largest customers, with Microsoft as its largest customer at 62% of revenue,” Ramnani said. “This year, Microsoft has made up ~70% of revenue through 3Q25, though it is expected to fall under 50% of revenue next year after the OpenAI contract begins. While there are significant supply constraints today, we see risks if a comparable alternative to NVIDIA’s GPUs emerges or supply constraints ease.”
Ramnani added that despite these risks, CRWV shares have a potential backstop to protect from share declines. The firm sees potential for NVIDIA or other partners to acquire CRWV if business conditions worsen – “as GPU and compute capacity will likely remain vital to AI models.”
CoreWeave, Inc. (NASDAQ:CRWV) is a cloud platform provider that provides equipment for AI and other computing purposes.
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