CoreWeave's (CRWV) ability to bring active power online at scale, combined with higher pricing from Nvidia's Vera Rubin deployments, should drive faster revenue growth than previously expected, BofA said in a note Thursday.
The brokerage said CoreWeave's contract structure helps contain the risks of its heavy spending. The company leases data centers from diversified third-party developers rather than building them, signs back-to-back deals with infrastructure providers and customers, and often receives prepayments of about 50% of contract value.
Its five-year contracts with investment-grade hyperscalers also support project-level financing, BofA said. It added that Wednesday's 15.5% share price decline likely reflected concerns over financing hurdles for AI infrastructure companies.
The brokerage raised its 2027 and 2028 revenue growth forecasts to 105% and 63% from 102% and 58%. It expects active power to reach 4.8 gigawatts by the end of 2028, with annual additions of 1.4-1.5 gigawatts, and revenue per megawatt to rise to $14 from about $10 now.
BofA noted CoreWeave has said it aims to increase its exposure to shorter-duration contracts, which command higher pricing but offer less revenue visibility and could raise its cost of capital. BofA still expects most capacity to stay with large, long-term customers.
BofA reiterated its buy rating and $140 price target.
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