CoreWeave (CRWV) Stock Slides as Bernstein Issues Bearish Call and Cramer Favors NVIDIA

TLDR Bernstein launched coverage of CoreWeave with an underperform rating and $56 price objective Shares were changing hands near $79.50 at Wednesday’s market close — significantly higher than the analyst’s target Madison Rezaei from Bernstein cautioned that hyperscalers won’t likely commit to additional major deals with CRWV CNBC’s Jim Cramer recommended viewers choose NVIDIA over CoreWeave In January, NVIDIA put $2 billion into CoreWeave, acquiring 22.9 million shares priced at $87.20 apiece Shares of CoreWeave fell 2% on Thursday following a bearish initiation from Bernstein, coupled with Jim Cramer’s statement that he’d prefer investors choose NVIDIA over the cloud infrastructure provider. CoreWeave, Inc. Class A Common Stock, CRWV Madison Rezaei, an analyst at Bernstein, established a $56 price objective for CRWV — representing approximately 30% downside from Wednesday’s closing price of $79.50. While Rezaei recognized that CoreWeave has successfully taken advantage of strong demand for GPU computing resources, questions remain about the company’s future trajectory. “With a plethora of options, we do not believe hyperscalers will be incentivized to sign further large contracts with CRWV,” Rezaei wrote. The fundamental bearish thesis is simple: major cloud infrastructure providers including AWS, Microsoft Azure, and Google Cloud are more inclined to develop their own competing capabilities rather than continue outsourcing to CoreWeave. “Hyperscalers are more likely to attempt head-on competition, going after GPU cloud business as the natural adjacency to traditional cloud, and cannibalizing CRWV’s market,” Rezaei added. Rezaei also noted that as overall compute capacity availability improves across the market, CoreWeave could face heightened competitive threats from larger cloud infrastructure companies. The research report arrived during an already challenging period for the shares, which have been swept up in the broader technology sector selloff this week....