CoreWeave Stock Soars on $14 Billion Meta Deal -- Wall Street Says the Nvidia-Backed AI Stock Is Still a Buy
News Summary
AI cloud services provider CoreWeave announced a $14.2 billion deal with Meta Platforms to provide computing power through 2031, with an option to extend through 2032. The agreement grants Meta access to Nvidia GB300 NVL72 systems, representing the bleeding edge of AI infrastructure. Following the news, CoreWeave shares surged nearly 12%, though most Wall Street analysts still believe the stock is undervalued, with a median target price of $157, implying 16% upside from the current $136. CoreWeave is a leader in the emerging
Background
CoreWeave is a
In-Depth AI Insights
What is the strategic significance of Meta's substantial, extended agreement for CoreWeave? The $14.2 billion multi-year agreement from Meta goes beyond mere validation of CoreWeave's services; it's a strong endorsement of the specialized AI infrastructure model. It suggests: - Strategic Capacity Securitization: Meta is ensuring long-term, priority access to the most advanced Nvidia GPUs (like the GB300 NVL72) in a highly competitive AI landscape. Through CoreWeave, Meta likely gains more tailored, efficient, and potentially cost-effective AI compute power than relying solely on general hyperscalers. - Capex Optimization: This move may reflect Meta's strategy to offload a portion of its colossal AI infrastructure capital expenditures (Capex) to CoreWeave, allowing it to focus its own capital and resources on core AI R&D and application layers, rather than heavy-asset hardware deployment and management. This is an