Nvidia-Backed AI Startup Boasts 'Extremely Rapid Revenue Growth' - JPMorgan Initiates With Overweight
Nvidia-backed AI startup CoreWeave has shown rapid revenue growth, prompting JPMorgan to initiate coverage with an Overweight rating and a $43 price target. Despite its strong position and large GPU fleet, analysts warn of potential volatility ahead. While bulls see high returns due to market demand, bears express concerns over future GPU demand and the risk of underutilization. Investors are advised to consider the high-risk, high-reward nature of CoreWeave's stock.
An Nvidia Corp NVDA -backed AI startup with a massive GPU fleet and breakneck growth is turning heads on Wall Street. But buckle up – analyst says the road ahead could be anything but smooth.
JPMorgan Kicks Off Coverage On CoreWeave
JPMorgan analyst Mark Murphy has initiated coverage on AI infrastructure company CoreWeave Inc. CRWV with an Overweight rating and a price target of $43 by December 2025.
At $35.42, the stock reflects a 21% potential upside. Murphy isn’t sugarcoating the road ahead – he expects a “volatile, lumpy, and wild ride,” but says the low growth-adjusted EBIT multiple creates “long-term upside potential.”
Read Also: CoreWeave’s IPO: 3 Major Red Flags Investors Can’t Ignore
CoreWeave is positioning itself as a full-throttle AI pure play, boasting what Murphy calls “extremely rapid revenue growth,” a “tremendous, high-quality RPO backlog,” and “positive, high-teens GAAP OpMargin.” The company also benefits from the backing of Nvidia, a partnership that may provide premier status as a test bed for cutting-edge GPUs.
According to Murphy, CoreWeave's track record of being first to deploy next-gen chips makes it difficult for other hyperscalers to claim leadership, particularly among top-tier AI customers like Microsoft Corp MSFT, OpenAI, Meta Platforms Inc. META and Nvidia itself.
Bulls Vs. Bears: What’s Priced In?
Murphy sees a wide range of outcomes. On the bullish side, CoreWeave is rapidly growing in a hot market, has strong strategic positioning, and operates one of the largest GPU fleets in the world. The potential to monetize fully amortized GPUs in the future is another upside lever.
But the bear case is no slouch. Some investors worry CoreWeave was a "stopgap solution" during the GPU shortages of 2023–24. As the supply-demand imbalance eases, concerns are growing that GPU prices could soften and large customers like Microsoft might not renew big contracts. That scenario could leave CoreWeave with a “high-cost, underutilized fleet” and hefty CapEx bills to match.
High Risk, High Reward
This is not a stock for the risk-averse. Murphy acknowledges that in a risk-off environment, CoreWeave shares could be hit disproportionately hard.
But for investors who can stomach the volatility, the growth story – and Nvidia connection – could make this wild ride worthwhile.
Read Next:
- Google In Talks To Rent Nvidia’s Blackwell Chips From CoreWeave: Report
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