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Investing.com - Evercore ISI raised its price target on CoreWeave (NASDAQ:CRWV) to $150 from $120 while maintaining an Outperform rating following the company’s announcement of a major expansion with Jane Street. The stock surged 31.8% over the past week to $118.21, though InvestingPro data suggests shares are currently trading above their Fair Value, placing the company on the platform’s Most Overvalued list.
CoreWeave announced today an approximately $6 billion expansion with Jane Street, a current customer. The deal provides Jane Street with access to CoreWeave’s AI compute infrastructure across multiple locations and includes Nvidia’s Vera Rubin platform and CoreWeave’s software and services stack. The expansion comes as CoreWeave posted revenue of $5.13 billion over the last twelve months, representing growth of 168%.
Evercore ISI estimates the deal represents more than $1 billion in annual revenue and approximately 100-120 megawatts of compute capacity, assuming a five-year contract duration. Jane Street made a $1 billion equity investment in CoreWeave at $109 per share as part of the announcement to help fund the initial capital expenditure required.
The Jane Street deal marks CoreWeave’s third major deal announcement over the past couple weeks. The firm noted these signings occurred after the first quarter close and will not be reflected in the March quarter ending remaining performance obligations or backlog.
Evercore ISI said the deal validates robust demand for AI compute infrastructure extending beyond frontier AI model customers. The firm said recent customer wins, financing announcements, and data points on customer contract renewals address investor concerns about demand, customer concentration risk, GPU useful life, and access to financing. An InvestingPro tip notes that analysts anticipate sales growth in the current year. For deeper insights, CoreWeave is among 1,400+ US equities covered by comprehensive Pro Research Reports available on InvestingPro.
In other recent news, CoreWeave has been in the spotlight due to significant financial and strategic developments. The company announced that Jane Street, a quantitative trading firm, committed approximately $6 billion to use CoreWeave’s AI cloud platform. In addition, Jane Street made a $1 billion equity investment in CoreWeave’s Class A common stock at $109.00 per share. CoreWeave also completed two private debt offerings, raising $4 billion in Convertible Senior Notes and $1.75 million in Senior Notes. The Convertible Notes are set to mature in 2032 and offer a conversion into cash or stock at a premium rate.
Furthermore, CoreWeave has secured a $21 billion contract with Meta and a new agreement with Anthropic, although the latter’s financial details remain undisclosed. Analyst firms have responded to these developments, with Bernstein raising its price target for CoreWeave to $67 while maintaining an Underperform rating. Meanwhile, Roth/MKM increased its price target to $135, citing the company’s recent financial activities, including the Meta contract and an $8.5 billion GPU-backed facility. These moves underscore CoreWeave’s strategic positioning in the tech industry.
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