BNP Analyst Optimistic on CoreWeave and Nebius
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 48 minutes ago
0mins
Source: seekingalpha
- Pricing Environment: BNP analyst Stefan Slowinski highlighted that SpaceX's recent AI infrastructure deals with Anthropic and Google are expected to generate $30 to $50 billion of revenue per GW, indicating a supportive pricing environment, although the revenue from the $6 billion Reflection AI deal remains unclear.
- Nebius Market Positioning: Slowinski believes Nebius's AI cloud stack is better positioned to support enterprise customers seeking cheaper alternatives to frontier models, even though this advantage has yet to manifest in reported financial results.
- CoreWeave Growth Potential: Slowinski noted that CoreWeave is significantly increasing its capacity, with expectations for improved execution by the second half of 2026; while current unit economics are masked, new contract pricing strategies help maintain mid-20% contribution margins.
- Investment Risk and Reward: Given the favorable pricing backdrop, Slowinski views CoreWeave's risk/reward profile as attractive at current levels, especially considering its approximately 1 GW of active power compared to Nebius's 200 MW, indicating a potential catch-up opportunity.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 85.685
Low
68.00
Averages
123.23
High
180.00
Current: 85.685
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BNP Analyst Optimistic on CoreWeave and Nebius
- Pricing Environment: BNP analyst Stefan Slowinski highlighted that SpaceX's recent AI infrastructure deals with Anthropic and Google are expected to generate $30 to $50 billion of revenue per GW, indicating a supportive pricing environment, although the revenue from the $6 billion Reflection AI deal remains unclear.
- Nebius Market Positioning: Slowinski believes Nebius's AI cloud stack is better positioned to support enterprise customers seeking cheaper alternatives to frontier models, even though this advantage has yet to manifest in reported financial results.
- CoreWeave Growth Potential: Slowinski noted that CoreWeave is significantly increasing its capacity, with expectations for improved execution by the second half of 2026; while current unit economics are masked, new contract pricing strategies help maintain mid-20% contribution margins.
- Investment Risk and Reward: Given the favorable pricing backdrop, Slowinski views CoreWeave's risk/reward profile as attractive at current levels, especially considering its approximately 1 GW of active power compared to Nebius's 200 MW, indicating a potential catch-up opportunity.
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Meta Platforms Shares Drop Following Analyst Comments
- Stock Volatility: Meta Platforms' shares fell sharply on Thursday morning, dropping as much as 4%, and were still down 3.7% as of 10:49 a.m. ET, indicating a sensitive market reaction to analyst comments that could impact investor confidence.
- Cloud Infrastructure Plans: According to a Bloomberg report, Meta is developing blueprints for a cloud infrastructure business aimed at selling its excess computing power and providing broader access to its AI models, which will put it in direct competition with cloud giants like Amazon, Microsoft, and Google, increasing market competition.
- Earnings Potential Analysis: Analysts at Wolfe Research estimate that Meta could add 20% to its earnings per share for every gigawatt of compute power sold, but this will lead to capital expenditures rising from $160 billion to $200 billion, likely necessitating additional financing to support this expansion.
- Market Opportunity: Despite the high spending, the cloud market Meta is entering is expected to exceed $500 billion for the first time this year, representing a significant ongoing revenue growth opportunity, while its stock trades at a 21 times earnings ratio, significantly lower than its peers, attracting investor interest.
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Meta Platforms Ventures into Cloud Computing Amid Investor Concerns
- Cloud Business Development: Meta is reportedly developing a cloud infrastructure business aimed at selling its excess computing power and providing broader access to its AI models, which could position it directly against giants like Amazon, Microsoft, and Google.
- Investor Reaction: Concerns over future spending have led to a sharp decline in Meta's stock, dropping as much as 4% on Thursday morning, with shares still down 3.7% as of 10:49 a.m. ET, indicating market uncertainty regarding its new business model.
- Earnings Potential Analysis: Analysts at Wolfe Research estimate that Meta could increase its earnings per share (EPS) by 20% for every gigawatt of compute power sold, but predict capital expenditures will rise to $200 billion by 2027, necessitating a capital raise to support this spending.
- Market Opportunities and Risks: While entering a market projected to exceed $500 billion for the first time presents new revenue opportunities for Meta, its stock is currently trading at a significant discount at 21 times earnings compared to its tech peers, highlighting the balance investors must strike between risk and reward.
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Analysts Reaffirm Buy Rating for CoreWeave Amid Meta Cloud Plans
- Overreaction in Market: Despite Meta's plans to launch a cloud computing business, CoreWeave's stock fell 14% on Wednesday; however, analysts believe this reaction is exaggerated and that there is little impact on CoreWeave's core cloud computing business.
- Buying Opportunity: Rosenblatt reiterated its ‘Buy’ rating on CoreWeave with a price target of $250, implying a 192% upside potential from Wednesday's closing price, reflecting confidence in the company's future growth.
- Stable GPU Demand: Channel checks by Rosenblatt indicate no change in hyperscaler demand for GPU computing capacity, with GPU shortages remaining common in the industry, suggesting CoreWeave's market position remains solid.
- Retail Investor Sentiment: Retail sentiment around CoreWeave on Stocktwits trended bullish, with CRWV stock up 20% year-to-date, indicating optimistic expectations for its future performance.
See More
Meta Plans to Enter Cloud Computing Market
- Cloud Business Outlook: CEO Mark Zuckerberg hints at Meta's plan to sell excess computing power, which, despite lower margins than its dominant online ad business, could provide new revenue streams and help diversify the company's business structure.
- Stock Price Recovery: After four consecutive quarters of decline, Meta's stock surged 9% at the start of the third quarter, marking its largest rally in over five months, indicating investor optimism regarding the company's cloud computing strategy.
- Increased Capital Expenditure: Meta raised its 2026 capital expenditure guidance by $10 billion to $145 billion, with part of the funding sourced from a $25 billion bond sale, reflecting the company's commitment to cloud infrastructure despite skepticism about its spending efficiency.
- Competitive Market Pressure: While Meta's cloud computing plans attract attention, analysts suggest it may not directly compete with major players like AWS, Azure, and Google Cloud, but rather follow a strategy similar to CoreWeave and Nebius, focusing on providing AI-specific computing products.
See More
Meta's Cloud Computing Push Sparks Stock Surge
- Stock Surge: Meta's stock jumped 9% on the first day of the new quarter, marking its sharpest rally in over five months, reflecting market optimism regarding its cloud computing initiatives, despite potentially lower margins compared to its advertising business.
- Cloud Strategy: CEO Mark Zuckerberg indicated that Meta plans to sell excess computing power to external customers and is considering offering access to AI models or raw computing power, which could open new revenue streams for the company, albeit with slimmer margins.
- Increased Capital Expenditure: Meta raised its 2026 capital expenditure guidance by $10 billion to $145 billion, with part of the funding coming from a $25 billion bond sale, demonstrating the company's commitment to investing in cloud infrastructure.
- Profitability Concerns: Analysts warn that selling cloud services requires building a large enterprise sales and support team, which could impact Meta's high gross margin, especially since its 82% gross margin is among the highest in the tech industry.
See More
BNP Analyst Optimistic on CoreWeave and Nebius
- Pricing Environment: BNP analyst Stefan Slowinski highlighted that SpaceX's recent AI infrastructure deals with Anthropic and Google are expected to generate $30 to $50 billion of revenue per GW, indicating a supportive pricing environment, although the revenue from the $6 billion Reflection AI deal remains unclear.
- Nebius Market Positioning: Slowinski believes Nebius's AI cloud stack is better positioned to support enterprise customers seeking cheaper alternatives to frontier models, even though this advantage has yet to manifest in reported financial results.
- CoreWeave Growth Potential: Slowinski noted that CoreWeave is significantly increasing its capacity, with expectations for improved execution by the second half of 2026; while current unit economics are masked, new contract pricing strategies help maintain mid-20% contribution margins.
- Investment Risk and Reward: Given the favorable pricing backdrop, Slowinski views CoreWeave's risk/reward profile as attractive at current levels, especially considering its approximately 1 GW of active power compared to Nebius's 200 MW, indicating a potential catch-up opportunity.
See More
Meta Platforms Shares Drop Following Analyst Comments
- Stock Volatility: Meta Platforms' shares fell sharply on Thursday morning, dropping as much as 4%, and were still down 3.7% as of 10:49 a.m. ET, indicating a sensitive market reaction to analyst comments that could impact investor confidence.
- Cloud Infrastructure Plans: According to a Bloomberg report, Meta is developing blueprints for a cloud infrastructure business aimed at selling its excess computing power and providing broader access to its AI models, which will put it in direct competition with cloud giants like Amazon, Microsoft, and Google, increasing market competition.
- Earnings Potential Analysis: Analysts at Wolfe Research estimate that Meta could add 20% to its earnings per share for every gigawatt of compute power sold, but this will lead to capital expenditures rising from $160 billion to $200 billion, likely necessitating additional financing to support this expansion.
- Market Opportunity: Despite the high spending, the cloud market Meta is entering is expected to exceed $500 billion for the first time this year, representing a significant ongoing revenue growth opportunity, while its stock trades at a 21 times earnings ratio, significantly lower than its peers, attracting investor interest.
See More
Meta Platforms Ventures into Cloud Computing Amid Investor Concerns
- Cloud Business Development: Meta is reportedly developing a cloud infrastructure business aimed at selling its excess computing power and providing broader access to its AI models, which could position it directly against giants like Amazon, Microsoft, and Google.
- Investor Reaction: Concerns over future spending have led to a sharp decline in Meta's stock, dropping as much as 4% on Thursday morning, with shares still down 3.7% as of 10:49 a.m. ET, indicating market uncertainty regarding its new business model.
- Earnings Potential Analysis: Analysts at Wolfe Research estimate that Meta could increase its earnings per share (EPS) by 20% for every gigawatt of compute power sold, but predict capital expenditures will rise to $200 billion by 2027, necessitating a capital raise to support this spending.
- Market Opportunities and Risks: While entering a market projected to exceed $500 billion for the first time presents new revenue opportunities for Meta, its stock is currently trading at a significant discount at 21 times earnings compared to its tech peers, highlighting the balance investors must strike between risk and reward.
See More
Analysts Reaffirm Buy Rating for CoreWeave Amid Meta Cloud Plans
- Overreaction in Market: Despite Meta's plans to launch a cloud computing business, CoreWeave's stock fell 14% on Wednesday; however, analysts believe this reaction is exaggerated and that there is little impact on CoreWeave's core cloud computing business.
- Buying Opportunity: Rosenblatt reiterated its ‘Buy’ rating on CoreWeave with a price target of $250, implying a 192% upside potential from Wednesday's closing price, reflecting confidence in the company's future growth.
- Stable GPU Demand: Channel checks by Rosenblatt indicate no change in hyperscaler demand for GPU computing capacity, with GPU shortages remaining common in the industry, suggesting CoreWeave's market position remains solid.
- Retail Investor Sentiment: Retail sentiment around CoreWeave on Stocktwits trended bullish, with CRWV stock up 20% year-to-date, indicating optimistic expectations for its future performance.
See More
Meta Plans to Enter Cloud Computing Market
- Cloud Business Outlook: CEO Mark Zuckerberg hints at Meta's plan to sell excess computing power, which, despite lower margins than its dominant online ad business, could provide new revenue streams and help diversify the company's business structure.
- Stock Price Recovery: After four consecutive quarters of decline, Meta's stock surged 9% at the start of the third quarter, marking its largest rally in over five months, indicating investor optimism regarding the company's cloud computing strategy.
- Increased Capital Expenditure: Meta raised its 2026 capital expenditure guidance by $10 billion to $145 billion, with part of the funding sourced from a $25 billion bond sale, reflecting the company's commitment to cloud infrastructure despite skepticism about its spending efficiency.
- Competitive Market Pressure: While Meta's cloud computing plans attract attention, analysts suggest it may not directly compete with major players like AWS, Azure, and Google Cloud, but rather follow a strategy similar to CoreWeave and Nebius, focusing on providing AI-specific computing products.
See More
Meta's Cloud Computing Push Sparks Stock Surge
- Stock Surge: Meta's stock jumped 9% on the first day of the new quarter, marking its sharpest rally in over five months, reflecting market optimism regarding its cloud computing initiatives, despite potentially lower margins compared to its advertising business.
- Cloud Strategy: CEO Mark Zuckerberg indicated that Meta plans to sell excess computing power to external customers and is considering offering access to AI models or raw computing power, which could open new revenue streams for the company, albeit with slimmer margins.
- Increased Capital Expenditure: Meta raised its 2026 capital expenditure guidance by $10 billion to $145 billion, with part of the funding coming from a $25 billion bond sale, demonstrating the company's commitment to investing in cloud infrastructure.
- Profitability Concerns: Analysts warn that selling cloud services requires building a large enterprise sales and support team, which could impact Meta's high gross margin, especially since its 82% gross margin is among the highest in the tech industry.
See More
