SKN | Bank of America Raises CoreWeave Target to $140 on AI Infrastructure Momentum

 

Bank of America Becomes More Bullish on CoreWeave

Bank of America has raised its price target on CoreWeave to $140 from $120 while maintaining a Buy rating, reflecting growing confidence in the company’s position within the rapidly expanding artificial intelligence infrastructure market.

The updated target follows another strong quarterly performance from CoreWeave, as demand for AI-related computing power continues accelerating across enterprise and hyperscale customers.

Bank of America’s revised outlook highlights how investor focus is increasingly shifting toward companies capable of supplying the large-scale infrastructure required to support AI model training and inferencing workloads.

AI Demand Continues Driving CoreWeave’s Expansion

CoreWeave reported first-quarter revenue growth of 127% year over year, reaching approximately $2.08 billion and surpassing analyst expectations.

The company’s backlog also expanded significantly, rising to roughly $99.4 billion from $66.8 billion in the prior quarter. Much of that increase was tied to previously announced agreements with major technology companies, including Meta Platforms, ongoing partnerships involving OpenAI, and strategic relationships connected to NVIDIA.

The expanding backlog provides investors with greater long-term revenue visibility at a time when AI infrastructure demand remains one of the strongest themes across global technology markets.

Inferencing Demand Emerges as a Major Growth Driver

Bank of America emphasized that AI inferencing is becoming increasingly important to CoreWeave’s growth trajectory.

While AI training workloads have traditionally dominated industry attention, inferencing — the real-time operation of trained AI models — is now representing more than half of CoreWeave’s compute usage.

This shift reflects broader adoption of AI applications across enterprise and consumer markets, where continuous deployment and execution of AI models require substantial cloud and data-center resources.

The growing importance of inferencing also supports expectations for more recurring and diversified infrastructure demand over time.

Data Center Expansion Supports Long-Term Outlook

Bank of America noted that CoreWeave’s data-center expansion continues progressing steadily.

The company’s active power capacity has surpassed 1 gigawatt, with an additional 700 megawatts expected to come online before year-end. Expanding infrastructure capacity remains critical as hyperscalers and AI developers continue racing to secure compute availability.

The aggressive buildout underscores the scale of investment currently flowing into AI infrastructure and cloud computing ecosystems.

Profitability Still Faces Near-Term Pressure

Despite the strong revenue growth and backlog expansion, CoreWeave continues operating within a heavy capital expenditure cycle that is pressuring short-term profitability.

The company reported a GAAP loss that came in slightly worse than expectations, reflecting the ongoing costs associated with rapid infrastructure deployment and scaling operations.

However, Bank of America expects margins to improve progressively through 2026 as infrastructure utilization rises and operational leverage strengthens. The firm projects full-year margins could eventually approach 8%.

Market Continues Rewarding AI Infrastructure Exposure

CoreWeave has emerged as one of the strongest-performing AI infrastructure stocks in the market, significantly outperforming the broader indices over the past year.

The company’s positioning as a pure-play AI cloud infrastructure provider has attracted strong investor attention as enterprises, developers, and hyperscalers compete for access to advanced compute capacity.

Bank of America’s higher price target reflects growing confidence that demand for AI infrastructure remains in the early stages of a longer-term expansion cycle.

Outlook

Looking ahead, investors will likely continue monitoring CoreWeave’s backlog growth, infrastructure deployment pace, margin progression, and evolving partnerships with major AI ecosystem players.

Demand trends surrounding AI inferencing, cloud computing, and hyperscale infrastructure investment remain central to the company’s long-term growth narrative.

Bank of America’s revised target reinforces the broader market view that AI infrastructure remains one of the strongest growth themes within the technology sector, with companies positioned at the center of compute demand continuing to attract significant investor interest.

For confidential insights on AI infrastructure markets, hyperscale cloud trends, and institutional technology investment developments, connect with the SKN team for professional engagement.