From BigGo Finance · BigGo Finance · · 1m 20s
Goldman Sachs Upgrades CoreWeave to Buy
Goldman Sachs upgrades CoreWeave to Buy after 25% AI selloff.
In brief
Goldman Sachs upgrades CoreWeave to Buy after 25% AI selloff. Goldman Sachs upgraded CoreWeave to Buy from Neutral, cutting price target to $106 after shares fell 25% in the week. Originally reported by BigGo Finance.
Goldman Sachs upgrade
Goldman Sachs upgraded CoreWeave to Buy from Neutral, cutting price target to $106 from $139.
25% share decline
CoreWeave shares fell 25% in the prior week after a 43% drop since Q2 results on Aug 11.
Debt concerns
CoreWeave's 2031 notes briefly yielded more than 16%, with 5-year credit default swaps pricing over 60% default odds.
Revenue backlog
CoreWeave has $104 billion revenue backlog and secured $25 billion in new orders early in Q3.
AI infrastructure costs
CoreWeave expects $35 billion to $39 billion in capital spending this year for AI infrastructure.
Nvidia CEO optimism
Nvidia CEO Jensen Huang said CoreWeave's cost of capital is falling and he is optimistic about the balance sheet.
Japanese lenders involved
Japanese banks including MUFG and Nippon Life are key creditors for CoreWeave's AI infrastructure buildout.
Investor reaction
Retail buyers added exposure as Robinhood Markets showed record five-day net purchases of CoreWeave shares.
What happens next
CoreWeave must convert $104 billion backlog into revenue while managing heavy debt load.
At a glance
Goldman Sachs upgraded CoreWeave to Buy from Neutral, cutting price target to $106 after shares fell 25% in the week.
