CRWV Rallies Ahead Of Quarterly Report: Wells Fargo Calls Coreweave 'Highest Quality' Firm Among Neocloud Peers, Sees Upside

(MENAFN- AsiaNet News)

• Analysts expect CoreWeave's Q3 sales to rise about 160%, though they will also watch expansion timelines, capacity deliveries, and debt levels. 
• Retail sentiment for CRWV was 'bearish' early on Tuesday.
• With Nebius also reporting its results on Thursday, investors expect a better read on the neocloud space this week.

Amid concerns about a slowdown in data center buildout, CoreWeave's third-quarter report, due after market hours on Tuesday, will be seen as a test for the neocloud sector.

Before the Democrats won control of Congress, neocloud firms were already under pressure as investors questioned their debt-fueled business model, the durability of Big Tech cloud spending, and the risk of adding planned capacity in a timely manner. 

Recently, a delay in IREN Ltd's (IREN) capacity expansion led Microsoft to spend less than it earmarked last quarter. With Nebius also reporting its results on Thursday, investors expect a better read on the neocloud space this week.

Even as analysts expect sales to more than double in CoreWeave's third quarter, capacity deliveries, expansion timelines and debt levels will be closely watched and will dictate sentiment. 

CoreWeave stock rose 5.6% on Monday and rose another 0.8% in overnight trading.

Analysts Forecast Guide, Capacity Deliveries

“The question is delivery: is contracted capacity entering service on schedule?” data center research firm Tessara posted on X.

“Three numbers to check when results land: 1. Active power: 1.5 GW at June 30, guided to >1.85 GW by year-end (raised from >1.7 GW in August). That's ~350 MW more in H2. 2. Q3 revenue: guided at $3.45–3.60B. 3. Full year: holding the $12.4 billion low end needs ~7.75B in H2, after $4.65B in H1.”

Earlier this week, Wells Fargo cut its price target on CRWV stock to $115 from $160  but retained its 'Overweight' rating. 

While neoclouds sit in the eye of the AI storm, Wells Fargo remains confident that CoreWeave is the highest-quality company in the space, the research firm said in its investor note, according to a summary on TheFly. It sees CoreWeave's capacity and revenues coming in better than expected.

Analysts expect Q3 revenue to rise a record 160% to $3.54 billion, per Koyfin estimates. The company is expected to report an adjusted loss of $1.21 per share, compared to a $0.08 per share loss in the corresponding quarter last year.

Currently, 32 out of 42 analysts have a 'Buy' or higher rating on CRWV, seven rate it 'Hold' and three rate it 'Sell' or lower. Their average price target of $131.53 implies a nearly 170% upside from the stock's last close.

CoreWeave-Wayve Partnership

CoreWeave on Monday said it signed a multi-year agreement to provide cloud computing for Wayve's artificial intelligence models used in self-driving vehicles.

Wayve will train its models on CoreWeave's platform with Nvidia (NVDA) Blackwell chips using driving data from more than 70 countries, the company said.

Retail View On CRWV

On Stocktwits, the retail sentiment for CRWV remained 'bearish' for a second day.“$CRWV tomorrow is probably the most consequential earnings of this company. I have high hopes,” said a trader.

Another wrote:“$CRWV Fake pump today given the NVDA scandal.” With Monday's gains, CRWV stock turned green for 2026 and was up 5.6% year to date. 

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