JPMorgan analyst Samik Chatterjee cited a favorable pricing backdrop for AI compute and strong demand for CoreWeave’s infrastructure.
- JPMorgan raised its revenue and margin forecasts, citing CoreWeave’s use of shorter-term contracts at premium pricing.
- The firm said the improved forecasts are in “contrast to a lackluster share price performance dictated by investor concerns around capital intensity.”
- CoreWeave has continued raising capital to fund its infrastructure expansion, including a $3.7 billion convertible debt offering and an ATM program covering up to 35 million Class A shares.
JPMorgan on Thursday upgraded CoreWeave (CRWV) shares to ‘Overweight’ from ‘Neutral’ and raised its price target to $125 from $120, citing a favorable pricing backdrop for AI compute.
CRWV stock gained as much as 1.5% in pre-market trading before paring most of the gains amid weakness in the broader market, and was among the top-trending tickers on Stocktwits at the time of writing. Retail sentiment around the AI firm trended in ‘bullish’ territory over the past day.
In a note to investors cited by TheFly, JPMorgan analyst Samik Chatterjee said the upgrade reflects improving fundamentals that have not been reflected in the stock.
The firm raised its revenue and margin forecasts for CoreWeave, which Chatterjee said is in “contrast to a lackluster share price performance dictated by investor concerns around capital intensity.”
Why JPMorgan Turned Bullish
Chatterjee cited favorable pricing for compute as the main reason behind the upgrade. CoreWeave continues to face strong demand for its AI infrastructure and is leaning into shorter-term contracts that carry premium pricing, according to the analyst.
He added that the pricing environment is helping the company capture higher rates for its compute capacity while demand for AI infrastructure remains strong.
CoreWeave’s Capital Needs Remain A Key Investor Concern
CoreWeave has spent much of 2026 balancing rapid infrastructure expansion with the financing required to support it. The company has used convertible debt, an at-the-market stock program, and other financing tools to fund its growth.
Last week, CoreWeave launched an ATM program covering up to 35 million Class A shares to provide “ongoing financing flexibility.” The company also said it had added more than $25 billion in net new customer commitments early in the third quarter, while total contracted power reached about 4.2 gigawatts (GW).
Alongside the ATM offering, CoreWeave raised $3.7 billion through a convertible debt offering at $97.85 per share. The offering was increased from the $3 billion deal CoreWeave announced earlier, while investors received a 2.875% annual interest rate and the notes are scheduled to mature in 2033.
CRWV stock has gained over 17% this year but fallen over 35% in the last 12 months.
Read also: IBM Joins Swift’s 17-Bank Pilot, Skipping The Cloud For On-Premises Crypto Infrastructure
For updates and corrections, email newsroom[at]stocktwits[dot]com.<