Evercore ISI has reiterated an Outperform rating and $150 price target for CoreWeave (NASDAQ:CRWV) following Blackstone and Alphabet's joint venture to create a TPU-based cloud provider.
CoreWeave shares fell 5% on the announcement day to close at $99.30, but remain undervalued. The stock has delivered a 38.5% return over the past six months.
Evercore ISI notes the new venture focuses on TPU compute capacity, not CoreWeave's GPU-based offerings. Major TPU users like Alphabet, Anthropic, Meta, and OpenAI still rely on CoreWeave for GPU compute.
CoreWeave recently signed a large expansion with Meta and a new deal with Anthropic, indicating sustained demand for its GPU cloud services.
Evercore ISI projects annual token consumption to reach 4.0 quintillion by 2030, with compute demand reaching 250 gigawatts.
In other news, CoreWeave closed a $3.1 billion AI infrastructure loan facility and launched CoreWeave Sandboxes. It also topped an inference speed benchmark for Moonshot AI's model.
