CoreWeave Secures $6.5B Partnership with OpenAI: Is Now the Time to Invest in CRWV Stock at $120?

CoreWeave (CRWV) shares declined 4% on Friday and 5% on Thursday, even after announcing a $6.5 billion deal with OpenAI. This agreement boosts CoreWeave’s total contract value to $22.4 billion, enhancing its status as a key AI infrastructure provider. With over 250,000 Nvidia GPUs across 32 data centers, CoreWeave is well-positioned to handle intensive AI workloads. However, despite its impressive 200% rise since its IPO, investors should exercise caution due to potential risks. These include customer concentration, with OpenAI and Nvidia possibly dominating revenue by 2027, and execution challenges in managing extensive data center projects in the U.S. and Europe. Additionally, with a high price-sales (P/S) ratio of 17x, the stock appears overvalued for a recent public offering. Analysts advise waiting for a price pullback before investing, as the consensus rating remains a “Moderate Buy” with limited upside potential.

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