Panic has gripped CoreWeave investors. What do analysts recommend doing with the stock?

CoreWeave shares fell more than 7% during trading on October 15, continuing the decline that had begun the previous day (the decline later slowed to 0.8%). Investors are concerned about the cost to the cloud provider of financing the construction of its AI infrastructure, according to Seeking Alpha. The rise in the cost of the company’s borrowing put additional pressure on CoreWeave’s stock. This year, the cloud provider has raised more than $35 billion through loans secured by chips, high-yield and convertible bonds, and stock sales. As of the end of June, the company’s total debt and lease obligations amounted to approximately $52 billion, according to Seeking Alpha.

In addition, on October 15, CoreWeave’s credit risk metric hit a new all-time high amid a sell-off of its high-yield bonds, according to Bloomberg.

On Wall Street, opinions are divided regarding the company's prospects: some analysts view the sell-off of CoreWeave shares as a good buying opportunity, while others are skeptical about the non-cloud company.

— CoreWeave’s stock is trading at a discount despite strong fundamentals, and investors should take advantage of this discount, according to Deutsche Bank analyst Brad Zelnick. His assessment was reported by CNBC. The investment bank recommends buying shares of the cloud provider, setting a price target of $150. This target implies 128% upside potential for CoreWeave compared to the close on Wednesday, October 14.

“There is no doubt that CoreWeave’s future is tied to the success of artificial intelligence and the demand for computing infrastructure to support it, and therefore its stock should reflect shifts in sentiment in this sector,” Zelnik wrote in a note to clients, emphasizing that, aside from this, Deutsche Bank “finds it difficult to identify company-specific factors that would justify the recent decline.” In his view, the fundamentals of the AI infrastructure market remain “quite favorable,” despite a slight decline in pricing for the use of large language models.

— “We believe CoreWeave’s key competitive advantage is its ability to bring power capacity online at scale,” wrote BofA analyst Tal Liani in a note to clients, as quoted by Yahoo Finance. According to his data, the company added 500 MW of operational capacity in the second quarter of 2026 and plans to bring its total capacity to 8 GW by the end of 2030. The analyst also views the company’s prospects positively: he set a price target for CoreWeave shares at $140 per share, which implies an increase of more than 110% from Wednesday’s closing price.

— Dan Ives, a well-known tech optimist and analyst , who spent eight years at Wedbush Securities, called investor panic surrounding CoreWeave “greatly exaggerated” after the company’s stock posted its biggest one-day drop in the past eight months, according to Benzinga. Ives expects the upcoming financial reports from hyperscalers to confirm the trajectory of AI infrastructure spending rather than cast doubt on it. He compared the current market reaction to previous bouts of panic, noting that concerns about CoreWeave “remind us of fears of a SaaS apocalypse earlier this year.”

— Following a drop in CoreWeave’s stock price on Wednesday, Ark Invest, managed by Cathie Wood, purchased shares of the cloud provider for its funds, according to Benzinga. The firm acquired 145,319 shares of CoreWeave through the ARK Innovation ETF and an additional 43,346 shares through the ARK Next Generation Internet fund. The total purchase amounted to 188,665 shares, worth approximately $12.4 million, based on the closing price of $65.78 on October 14.

— Meanwhile, DA Davidson analyst Gil Luria warned that CoreWeave’s stock could become completely worthless if the AI spending boom fizzles out, according to Benzinga. In his view, the company’s borrowing costs exceed its return on investment, which makes it vulnerable in the event of a downturn. However, Benzinga notes that Luria’s warning describes a negative scenario rather than the company’s official forecast; DA Davidson’s latest confirmed recommendation on CoreWeave shares is “neutral” with a price target of $100. This target implies a 52% increase in the stock price relative to the last closing price.

— “How much will each additional dollar of growth cost? This has long been a source of concern for us,” Bernstein analysts write in their report on CoreWeave. In their view, the company needs more than just customers willing to purchase computing power; it needs lenders willing to finance equipment on terms that would still provide shareholders with attractive returns, they believe. Bernstein analysts recommend selling CoreWeave shares, noting that its long-term business model “remains economically vulnerable.”

Overall, on Wall Street, 33 of the 46 analysts covering the company's stocks recommend buying them. Ten of them are neutral, and only three advise selling.

This article was AI-translated and verified by a human editor