Bank of America Raises CoreWeave Revenue Growth Forecasts

Bank of America raised its revenue growth forecasts for CoreWeave, an artificial intelligence cloud computing provider, while reiterating a buy rating and a $140 price target. The financial institution increased 2027 revenue growth projections to 105% and 2028 projections to 63%, citing the company's ability to scale computing capacity and the deployment of next-generation Vera Rubin systems from Nvidia.

Bank of America expects revenue per megawatt to rise from $10 to $14 by the end of 2028. To support this growth, CoreWeave aims to reach 4.8 gigawatts of active capacity by the end of 2028 and 8 gigawatts by 2030. The company manages financial risk by leasing data center capacity from third parties and securing long-term contracts with prepayments.

Despite the positive outlook from the bank, CoreWeave shares fell 3% on Thursday. Investors expressed concerns regarding the cost of funding rapid AI infrastructure expansion in an environment of rising bond yields.