Citi said it is renewing coverage on CoreWeave (CRWV) after a restricted period with a Buy/High Risk rating, noting that demand and capacity look on track through the fourth quarter.
The firm lowered the price target on the shares of the AI infrastructure provider to $135 from $192.
“Coreweave continued to see strong bookings in 3Q with 85% QoQ and 270% Y/Y growth, but supply constraints and specifically powershell capacity delays resulted in a timing issue with revenue + CapEx [Capital Expenditure] pushed from Q4 into 1Q26. Shares have been under pressure post quarter, amidst broader AI market + financing concerns,” said analysts led by Tyler Radke.
The analysts added that their recent management check-in indicates capacity ramps and bookings strength are continuing into the fourth quarter, which they think drives accelerating growth in 2026.
The analysts noted that their 2026/2027 revenue and CapEx estimates remain above the street, with their 2026 revenue estimates 5% above consensus, with strong Remaining Performance Obligations, or RPO, commentary.
Radke and his team said that their management checks suggest demand trends are similar relative to 30 days ago, with near-term capacity completely sold out through 2026 and conversations starting for early 2027.
Enterprise/non-hyperscaler interest continues to increase month-over-month in terms of pipeline, with at least two enterprise fourth quarter contracts individually exceeding the $100M Annual Recurring Revenue, or ARR, threshold, though hyperscalers/AI Labs still dominate bookings, according to the analysts.
“The demand is so overwhelming that the company frequently turns away customers, including anestimated $40-50 billion in potential spend from Microsoft (MSFT) that went to other GPUaaS [GPU as a Service] providers due to these capacity constraints,” said Radke and his team.
The analysts noted that to manage growth, the company is focusing on a self-build strategy using an 80/20 joint-venture model, which allows for rapid deployment while controlling most of the capital expenditure.
“Financially, the company is in a strong position with over 60% of its revenue attached to investment-grade customers and plans to announce a new credit facility in the first half of next year, which should further reduce its cost of capital,” the analysts added.
Radke and his team noted that in terms of product and revenue-profitability specifics, so far the company’s management has seen consistent product margins on new hardware like Nvidia’s (NVDA) Blackwell versus Hopper. On top of this, software/services are on track to eclipse $100M in revenue next year, the analysts added.