CoreWeave Stock Soars: Time to Buy?

CoreWeave (NASDAQ: CRWV) shares jumped on Friday, after Citigroup analysts gave the AI (artificial intelligence) computing stock a buy rating and a 12-month price target of $192 -- far ahead of where the stock is trading now (even after its nearly 23% jump on Friday).While CoreWeave bulls undoubtedly appreciate the big move higher, nothing has changed in the underlying business. CoreWeave's core problem remains: It will likely need to spend an extraordinary amount of capital before it can prove it can produce substantial and durable profits that live up to its valuation.The tech company, which runs data centers packed with Nvidia graphics processing units (GPUs) and sells that computing power to AI labs and hyperscalers that want to train and run large and powerful AI models, has seen explosive demand. Of course, the challenge is translating that demand into revenue and, ultimately, into profits.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool