CoreWeave (NASDAQ: CRWV) shares rose 6.53% to $65.40 in premarket trading Monday as of 8:46 a.m. ET, after Goldman Sachs upgraded the artificial intelligence infrastructure provider from Neutral to Buy, arguing that investors may be overestimating its future financing costs while undervaluing potential returns from its computing assets.
Goldman Sachs analyst Gabriela Borges lowered her price target to $106 from $139 despite the upgrade. The revised target still represents approximately 62% upside from the premarket share price.
CoreWeave Rebounds After Steep Weekly Selloff
CoreWeave closed Friday at $61.39, down 11.91% for the session, as rising borrowing costs and concerns about the financing of AI infrastructure weighed on the stock.
Goldman Sachs estimated that the shares had fallen 24% over the previous five trading sessions and 43% since August 11, when the company reported its second-quarter earnings.
Despite Monday’s recovery, CoreWeave remained approximately 20% below its October 9 closing price of $82.08.
The recent decline followed a sharp increase in yields on CoreWeave’s unsecured bonds, raising questions about the cost of funding additional computing capacity. Investors have also been weighing whether future demand for advanced AI models and changes in computing workloads will generate sufficient revenue to support the industry’s infrastructure spending.
Separately, CoreWeave Tokenized bStocks (CRWVB) traded at $65.23, up 7.2% over the preceding 24 hours, according to CoinMarketCap. The tokenized asset differs from CoreWeave’s Nasdaq-listed shares. Its 24-hour performance is not directly comparable to the stock’s premarket move.
Goldman Expects Stronger Computing Returns to Offset Financing Pressure
Goldman Sachs expects CoreWeave’s annual recurring revenue per megawatt of computing capacity to increase over the next 24 months. Borges cited limited available supply, competitive computing performance and costs, and the company’s ability to bring additional capacity online.
The bank expects higher revenue per megawatt to support improvements in CoreWeave’s unlevered internal rate of return, a measure of investment returns before the effects of debt financing.
Borges forecasts a 100-to-200-basis-point increase in CoreWeave’s blended borrowing costs, equivalent to one to two percentage points. However, based on discussions with industry credit investors, she expects limited additional increases beyond that range.
CoreWeave’s unsecured debt has recently traded at yields to worst of 13.5% to 15%, reflecting the higher returns bond investors require to hold the securities. Borges argued that these yields may overstate the company’s likely cost of new financing because CoreWeave relies primarily on loans backed by computing infrastructure and other assets.
The company demonstrated this approach to financing in August when it closed a $2.6 billion infrastructure-backed loan facility priced at the Secured Overnight Financing Rate (SOFR) plus 5.5 percentage points. The facility supports the purchase of computing equipment and customer deployments, although its pricing does not determine the terms of future borrowing.
Other Wall Street analysts have also addressed CoreWeave’s ability to finance its expansion. On Friday, Cantor Fitzgerald analyst Brett Knoblauch reaffirmed an Overweight rating and $176 price target, saying nearly all computing capacity scheduled to become available in 2027 had already been contracted.
Knoblauch also pointed to Nvidia’s commitment to purchase residual unsold computing capacity. Under an agreement disclosed in September 2025, Nvidia is obligated to purchase qualifying unsold capacity through April 13, 2032, subject to contractual termination, delivery and service-availability conditions.
Goldman Sachs acknowledged that future AI infrastructure demand, available computing supply and the residual value of equipment remain difficult to forecast. Nevertheless, the bank expects developments over the next 12 months to provide further evidence about CoreWeave’s computing returns and financing outlook.
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