CoreWeave listed big pump 340% but subsequently fell sharply, with Wall Street analysts having differing views on future performance.

CoreWeave Inc ( NASDAQ ticker CRWV) saw its stock price surge approximately 340% after going public, but then began to decline continuously. Last Tuesday, the stock price rebounded over 8%, and it currently stands at $170. There are differing opinions among Wall Street analysts regarding the future performance of the stock. Bank analyst Brad Sills downgraded the stock rating to medium but still set a target price at a new high, far exceeding the estimates of other Wall Street analysts. Sills remains bullish on the subsequent market, while other analysts express skepticism, leading to a variety of viewpoints.

CoreWeave is one of the largest holders of Huida (NVDA) graphics processors, and CoreWeave leases data center capacity to Microsoft (MSFT) and Meta (META) and other big tech companies, because their own GPU inventory is not enough to support their AI business. CoreWeave used stock of Huida GPUs as collateral to borrow at high interest rates to buy more Huida chips, and Huida is also a major investor and customer of the AI cloud company. Since its IPO in March, CoreWeave has increased its market capitalization by more than $64 billion, reaching $82.7 billion on Tuesday afternoon, a phenomenal stock that will keep an eye on the company's future performance. The following is an analysis and collation report, pure market observation, non-investment advice.

CoreWeave's stock immediately declined after going public.

Bank analyst Brad Sills downgraded CoreWeave's stock rating from a previous buy to hold on Monday, citing concerns that CoreWeave is overvalued. He noted that CoreWeave currently has a price-to-earnings ratio of 27 times (based on projected earnings for 2027) and emphasized its heavy debt load. In a report to clients, Brad Sills wrote that historically, 85% of CoreWeave's capital expenditures have come from debt, estimating that expenditures will reach $23 billion by 2025, a figure that surprised Wall Street analysts and led to an immediate drop in stock price after its public listing. Despite the downgrade, Brad Sills raised the target price to $185, the highest among Wall Street analysts tracked by Bloomberg.

Brad Sills listed CoreWeave's spending on artificial intelligence and stated that these expenditures remain very healthy, with growth rates reaching a peak. Brad Sills believes that the market demand for CoreWeave's artificial intelligence infrastructure continues to be strong. He noted that by 2027, artificial intelligence capital expenditures are expected to grow by 4%, reaching $20.6 billion, but this increase is far lower than the 65% increase in artificial intelligence capital expenditures in 2025. Brad Sills also mentioned the expanded deal between CoreWeave and OpenAI (OPAI.PVT). CoreWeave signed a $4 billion deal with the ChatGPT maker in May.

Wall Street analysts have mixed opinions and hold a skeptical attitude.

Jefferies analyst Brent Thill praised CoreWeave in a report to clients on Monday, listing the stock as one of the most noteworthy AI stocks and reaffirming its target price of $180. Thill stated that CRWV is the fastest-growing AI provider within the company’s research coverage and believes that their infrastructure is more durable than most people imagine.

DA Davidson analyst Gil Luria stated in an interview with Yahoo Finance that even in an optimistic scenario, all cash flow from CoreWeave contracts is used to pay off debt, with not a single penny going to shareholders. Luria pointed out that there are still some concerns regarding the massive deal between CoreWeave and OpenAI. Although OpenAI is an outstanding company, it is also facing substantial losses, and OpenAI must secure more funding to uphold its commitments to CoreWeave.

This article discusses CoreWeave's big pump of 340% after which it has continuously declined, with Wall Street analysts having differing views on its subsequent performance. It first appeared on Chain News ABMedia.