SKN | Bank of America Raises Targets on CoreWeave and Nebius, Reinforces AI Infrastructure Bull Case

Key Points

• Bank of America reaffirmed a bullish stance on AI infrastructure players.
  
• Price targets were set at $100 for CoreWeave and $150 for Nebius, implying strong upside.
  
• The AI-driven cloud market continues to expand rapidly, supporting long-term growth expectations.

Bank of America has reaffirmed its conviction in the AI infrastructure theme, raising its price target on CoreWeave to $100 and initiating coverage on Nebius Group with a $150 target. Both ratings imply meaningful upside, even as the stocks have recently faced volatility, reflecting confidence that the long-term AI buildout remains underappreciated by the market.

AI Infrastructure Market Expanding Rapidly

The investment case is anchored in the rapid growth of AI-focused cloud infrastructure, which is diverging from traditional computing models. Demand for high-performance computing, including GPUs, low-latency networks, and energy-intensive data centers, is accelerating as AI adoption scales across industries. Bank of America points to a total addressable market that could grow toward $400 billion or more by the end of the decade, driven by sustained demand for AI workloads.

CoreWeave: Execution and Scale Advantage

CoreWeave is viewed as a more established operator, with strong revenue visibility supported by a large contracted backlog. The company is expected to deliver rapid growth, with forecasts pointing to triple-digit revenue expansion in the near term. Its infrastructure is purpose-built for AI, allowing faster deployment and improved efficiency compared to traditional cloud providers.

Nebius: Platform Growth and Strategic Positioning

Nebius Group is positioned as a platform-driven player, focusing on building scalable AI infrastructure with global reach. The company is targeting significant capacity expansion and leveraging partnerships to secure long-term demand, with contracted revenues providing visibility into future growth. Its architecture, which connects compute resources across regions, is seen as a differentiator in addressing capacity constraints.

Capital Intensity Remains a Key Risk

Despite strong growth prospects, both companies face high capital requirements to scale infrastructure. Building AI-ready data centers and expanding compute capacity requires substantial investment, which could pressure margins if not matched by sustained demand. Bank of America acknowledges these risks but maintains that the structural demand for AI infrastructure outweighs near-term concerns.

Outlook

Bank of America continues to view AI infrastructure as one of the most compelling long-term investment themes. CoreWeave and Nebius Group are positioned as key beneficiaries, provided they can execute on growth plans and manage capital efficiently. As AI adoption accelerates, these companies could play a central role in shaping the next generation of cloud computing.

For confidential inquiries, partnership opportunities, or deeper insights into AI infrastructure, cloud computing trends, and equity positioning strategies, we invite you to connect directly with the SKN team for professional engagement.