CoreWeave Soars on Nvidia’s $2 Billion Backing as Wall Street Splits on Outlook

Overview

• HSBC cut CoreWeave’s price target to $41 with a Reduce rating, warning of a roughly $8.9 billion 2026 liquidity shortfall and modeling borrowing costs above 10% after a 250 bps CDS widening.
• Deutsche Bank upgraded the stock to Buy with a $140 target, arguing revenue could rise through 2026 if CoreWeave brings planned capacity online for contracted customers.
• Mizuho lifted its target to $100 but kept a Neutral stance, citing the planned 5 GW build-out, Nvidia’s $2 billion equity injection, and long-term potential from selling CoreWeave’s software stack.
• Shares recently traded just under $110, up about 70% since before Christmas and roughly 17% this week following Nvidia’s commitment to accelerate infrastructure expansion.
• Skeptics highlight leverage and concentration risks, noting CoreWeave pays over $300 million in quarterly interest—more than 20% of revenue—and is closely tied to Nvidia for its AI infrastructure push.