Why CoreWeave stock just rocketed 20% and could double again
Buyers have returned to this data-centre operator in droves following last night’s third-quarter results. Graeme Evans reveals what the analysts think and why.
11th November 2026 15:28
by Graeme Evans from interactive investor
Photo: Jonathan Raa/NurPhoto via Getty Images.
AI cloud platform CoreWeave Inc Ordinary Shares - Class A (NASDAQ:CRWV) today settled Wall Street nerves in a session when NVIDIA Corp (NASDAQ:NVDA) shares steadied after their two-day slump and the Nasdaq traded sharply higher.
Boosted by last night’s forecast-beating quarterly results, the shares of CoreWeave jumped 15% at the opening bell, while its major shareholder Nvidia added 3% to trade near $174.
- Invest with ii: Buy US Stocks from UK | Most-traded US Stocks | Cashback Offers
The semiconductor giant started today’s session about 28% below its record level of 6 October, having been hit by a combination of weaker tech sentiment and governance fears sparked by an independent investigation into chief executive Jensen Huang.
However, the company received a boost today ahead of third-quarter earnings on 17 November when Morgan Stanley reiterated its Buy recommendation and $300 target price.
The S&P 500 index and Nasdaq both recorded stronger sessions as investors returned after yesterday’s strong inflation reading fuelled speculation of further US interest rate rises.
CoreWeave, which operates more than 50 data centres worldwide with more than 1.5 gigawatts of active power, has been one of the hardest stocks in the recent tech sell-off.
It listed on Nasdaq in March 2025, when shares were priced at $40 for a valuation of $19 billion (£14.3 billion).
They quickly hit $180 but ended last year back at $80 before resuming their descent in May as Wall Street worried about the cost of the data centre build-out and associated high-yielding debt.
The shares were as low as $43 after the Democratic sweep of Congress in last week’s US midterm elections sparked fears of greater regulation of the AI buildout. However, they rallied almost $10 to nearly $59 early in today’s session while fellow neocloud firm Nebius Group NV Shs Class-A- (NASDAQ:NBIS) also jumped.
- Tech sell-off: what’s going on and key questions for fund investors
- Fund Focus: meet the ‘winners’ of the tech sell-off
- Has it paid off to invest differently in the US?
Deutsche Bank highlighted a price target of $125 as it said last night’s third-quarter earnings had given management a platform to address many of the concerns weighing on the stock and to reinforce the strengths of CoreWeave’s business.
It said: “We think they delivered on multiple fronts.”
The bank pointed out that CoreWeave continued to build its track record of consistent execution in an environment where less experienced AI cloud providers are experiencing growing pains as they begin to scale.
Its comments followed a record quarterly revenue performance of $3.66 billion, which beat Wall Street expectations after customer wins across AI labs, hyperscalers, and enterprises.
The strong performance led CoreWeave to upgrade guidance for this year to between $13 billion and $13.3 billion, compared with Wall Street’s estimate of $12.9 billion.
Deutsche Bank added that the demand backdrop remains robust, which supported another quarter of sequentially higher prices and strategic choice regarding the customers to which CoreWeave allocates capacity.
It added that improving unit economics and scale are expected to enable underlying earnings less interest expenses to more than double year-on-year in 2027 and for the company to reach earnings per share profitability in 2028.
The New Jersey-based group raised its 2026 adjusted operating income guidance to a range of $1.275 billion to $1.375 billion, representing a 26% increase at the midpoint compared with its prior guidance.
It continues to expect more than 1.85 gigawatts of active power at the year-end, having doubled its active footprint since the start of the year.
- Sign up to our free newsletter for investment ideas, latest news and award-winning analysis
- What the Democrat sweep means for portfolio
- Nick Train: performance, AI ‘victims’, and navigating a bear market
CoreWeave lifted the lower end of its full-year capital expenditure range to between $37 billion and $39 billion as it deploys infrastructure and delivers it to customers sooner than planned. Interest expense for the fourth quarter will be in the range of $1.05 billion and $1.15 billion.
Michael Intrator, co-founder, chair and chief executive, said: “This was a breakout quarter for CoreWeave, with revenue increasing by more than $1 billion sequentially and adjusted operating margins reaching double digits a quarter ahead of plan.”
He pointed out that growth was supported by multiple sources of funding, with approximately $9 billion in customer prepayments and deposits expected in the next three months alone.
Intrator added: “That financial flexibility positions us to keep delivering the infrastructure and software customers need to build, run, and scale AI."
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.