UBS initiates CoreWeave with Buy, sets $120 target after GPU rental rates rise 25% and 10%
AI Market Summary
CoreWeave's rapid GPU price hikes (25% in July, then ~10%) indicate tight AI compute supply and stronger monetization per unit of power, supporting the UBS Buy thesis. Large reported backlog ($104B) plus incremental customer commitments and new convertible financing improve near-term revenue visibility and funding flexibility. Key near-term risk remains buildout constraints and potential delays from local opposition and capital intensity.
Impact level
● Medium
Affected assets
NCSKCRWV2USD/USDT+1.25%
AI Insight · NCSKCRWV2USD/USDTAI Insight
▲ Bullish
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AI cloud provider CoreWeave has raised the hourly rental price for its hosted NVIDIA GPUs twice in recent months, lifting rates 25% in July and then another 10% over the following two to three months. UBS five-star analyst Karl Keirstead rated the stock Buy and set a $120 price target. CoreWeave said short-term contracts signed in the third quarter were worth about $40 million in annualized revenue per megawatt, and it reported roughly $104 billion of revenue backlog at the end of June. The company also added more than $25 billion of new customer commitments early in the third quarter and recently priced $3.7 billion of convertible notes.
