Goldman Sachs Upgrades CoreWeave Despite 15% Bond Yields as Stock Jumps 6%

Goldman Sachs upgraded CoreWeave (CRWV) to Buy, cutting its price target to $106. The AI cloud company's shares fell 25% last week amid debt concerns, despite $2.58B revenue and $104B backlog in Q2. Nvidia CEO defended CoreWeave, noting its improving strength and no financial backstop need.

CoreWeave (CRWV) stock initially rose 3% after Goldman Sachs upgraded it to Buy and raised its price target to $139. Concerns over its debt-heavy balance sheet and rising interest expenses were highlighted by a viral chart. Nvidia's CEO expressed optimism about CoreWeave's cost of capital. Retail investors and Wall Street analysts defended the stock, citing a $104 billion revenue backlog.

Ameriprise Financial dropped 4% after Bank of America downgraded it to underperform, citing advisor departures and profit growth concerns. Semiconductor ETF SMH rose 3%, with Nvidia, AMD, Sandisk, and Marvell gaining. CoreWeave climbed 1% after a Goldman Sachs upgrade to buy. Cleveland-Cliffs surged 16% on better-than-expected earnings. Intel gained 4% following a JPMorgan upgrade. Datadog rose 6% after a Bernstein upgrade. Amazon climbed 5% as Morgan Stanley named it a top pick.

Goldman Sachs upgraded CoreWeave to Buy with a $106 price target, implying 73% upside. Shares rose 2.8% after a 43% drop since August. The move helped the Philadelphia Semiconductor Index snap an 8-day losing streak, rising 2.9%. Analyst Gabriela Borges believes investors underestimate CoreWeave's potential returns and overestimate its capital costs, citing $35B in contracted business with Meta.

CoreWeave (CRWV) shares rose over 5% after Goldman Sachs upgraded the AI cloud provider, citing potential underestimation of financial benefits from customer contracts. The upgrade highlights the company's contract structure and its role in the growing AI market. Details on the new rating, price target, or financial estimates were not provided.

Goldman Sachs upgraded CoreWeave (CRWV) to Buy with a $139 price target, citing a 25% selloff as overdone. The AI cloud provider's stock rebounded after the rating change, which followed concerns about its high debt and financing for AI infrastructure. CoreWeave has a $104B revenue backlog and expects $35B-$39B in capex. Nvidia (NVDA), which holds a 10% stake, reassured investors about its balance sheet.