This Is Why CoreWeave Stock (CRWV) Surged Today
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CoreWeave CEO Michael Intrator stated that the company is building a cloud platform specifically for AI in order to meet the 'relentless' need for high-performance computing. Unsurprisingly, the new data center is expected to create economic growth in the region while also driving innovation. The announcement comes shortly after CoreWeave revealed its $9 billion acquisition of Core Scientific (CORZ), which is a company that provides data center infrastructure. This deal will give CoreWeave better access to power and real estate while cutting $10 billion in future lease costs.
It is worth noting that CoreWeave was already a major customer of Core Scientific, so the move strategically improves its position in the AI infrastructure market. As a result, the new data center investment and acquisition will help CoreWeave scale faster in order to not only compete but also thrive in the booming AI market. Indeed, CoreWeave, which rents out access to Nvidia (NVDA) AI chips, has grown quickly since going public in March, as its stock has more than tripled from its opening price of $39.
Is CRWV a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on CRWV stock based on four Buys, 15 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $99.39 per share implies 31.1% downside risk.
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