Goldman Sachs Just Upgraded CoreWeave Stock. Here's Why.

Goldman Sachs analyst Gabriela Borges says long-term investors should treat the recent pullback in CoreWeave (CRWV) shares as a buying opportunity. In a research note this morning, she upgraded the artificial intelligence (AI) infrastructure giant to “Buy” and announced a downwardly revised $106 price target that nonetheless suggests meaningful upside potential.

CoreWeave stock has been hit hard in recent months amid a broader AI rout. It is currently trading at less than half its price in early May. 

Behind Goldman Sachs’s Bullish View on CRWV Stock

Borges’s bullish case rests on how much CoreWeave can earn from each megawatt of capacity. She sees annual recurring revenue per megawatt and investment returns before financing costs as “biased to the upside in the next 14 months,” supported by scarce computing supply and advantages in performance, costs, and execution.  

Additionally, the analyst cited CRWV’s price increases (25% in July and another 10% in October), which she believes could improve the economics of infrastructure already being built, minimizing reliance on capacity expansion alone to drive growth. 

Why Else Is Borges Constructive on CoreWeave Shares?

Goldman Sachs expects CoreWeave’s blended borrowing costs to rise between 100 and 200 basis points, but sees limited additional deterioration over the longer term.  

Although unsecured debt recently traded at yields as high as 15%, Borges argues those figures may misrepresent future funding costs because CRWV primarily uses asset-backed financing. In short, she believes computing returns will improve sufficiently to absorb more expensive capital.

“Not all neoclouds are created equal, and we view CoreWeave Inc as being toward the top of the quality rankings in the ecosystem,” the analyst told clients. 

That said, Barchart currently holds a “100% SELL” opinion on CRWV stock, indicating technical momentum remains increasingly against it for the near term. 

Wall Street Remains Bullish on CoreWeave

Investors could nevertheless take heart in the fact that other Wall Street firms are also constructive on CRWV shares heading into 2027. 

According to Barchart, the consensus rating on CoreWeave sits at “Moderate Buy,” with the mean price target of about $136 indicating the AI stock could more than double from here over the next 12 months. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.