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CoreWeave Confronts Securities Class Action as Analyst Reaffirms Bullish View

A new lawsuit challenges the company’s capacity claims despite a research note pointing to a $56 billion backlog.

Overview

  • Bleichmar Fonti & Auld LLP said a class action was filed against CoreWeave and certain senior executives alleging securities fraud.
  • The filing claims the company overstated its ability to deploy AI infrastructure and failed to disclose major data center construction delays.
  • Citizens reiterated a Market Outperform rating with a $180 price target, citing CoreWeave’s role in GPU-as-a-Service and a backlog exceeding $56 billion.
  • The research note also warns of risks that include potential pricing pressure, customer concentration, and leverage.
  • Context from recent coverage highlights rapid revenue growth, Nvidia’s investment, and a Yahoo Finance report that Nvidia has pledged to buy any unused CoreWeave capacity through April 2032.