Bank of America raises CoreWeave 2026 price target

Bank of America raised its 2026 price target for CoreWeave in a research note, citing stronger demand for artificial intelligence workloads and higher-than-expected cloud GPU utilization. The bank said it revised upward revenue and margin assumptions for the GPU-focused cloud provider.

The research team pointed to sustained demand from large language model training and inference and to growing visibility into multi-year customer commitments that support higher utilization of CoreWeave’s hardware capacity. Those factors led the bank to increase its forward revenue forecasts and the multiple used in its valuation.

Bank of America raised its estimates for revenue growth from 2024 through 2026 and projected improved operating leverage as fixed costs are spread over a larger installed base of GPUs and related services. The note cited recent customer wins and expanded capacity leases as reasons for a more optimistic top-line view.

The revision reflected changes in GPU compute pricing assumptions and in the pace of enterprise adoption of generative AI tools. The research team said higher average utilization rates for training clusters and stronger demand for inference services supported better gross margin expectations, while ongoing capital expenditures will affect the timing of free cash flow.

Analysts identified several risks to the updated forecast. CoreWeave’s growth depends on access to high-end accelerators, a capital-intensive build-out of data center capacity and the company’s ability to differentiate through service and system integration. Competition from large cloud providers offering GPU instances and from other specialized infrastructure firms remained a constraint. Supply constraints for the newest GPUs and potential pricing pressure were listed as downside risks.

The note listed potential catalysts that could further affect the stock’s outlook, including additional long-term contracts with AI model developers, new regional data-center openings and improved supply agreements for GPUs. It also said changes in enterprise AI spending patterns or a shift toward on-premises solutions would alter the bank’s assumptions.

CoreWeave operates a GPU-native cloud platform that rents compute capacity to companies training and running large AI models, providing hardware and software integration for performance-heavy workloads. The company has expanded capacity as demand for compute-intensive AI applications increased, positioning it as a specialized alternative to general-purpose public cloud providers.

Bank of America’s updated target is one of several analyst revisions across the AI infrastructure sector as research teams reprice companies based on evolving demand for large-model training and inference services. The bank’s note added that while growth prospects have improved, capital intensity and competitive dynamics will influence CoreWeave’s financial profile and cash flow timing.