This Artificial Intelligence (AI) Stock Could Soar by 63%, According to Wall Street
It has lagged broader equities so far this year.
Overview
Whether the artificial intelligence (AI) bubble will soon burst is the subject of heated debates on Wall Street. Some believe that the pace the industry has experienced in recent years can't last much longer, while others argue that AI infrastructure spending tells a very different story. For those bullish on the future of AI, there are attractive stocks to consider buying right now. One of them may be CoreWeave (NASDAQ:CRWV), a company that rents out AI computing capacity. Wall Street seems excited about CoreWeave's prospects: The company's average price target of $141.39 (according to Yahoo! Finance) implies about 63% upside from current levels. Should investors rush to purchase CoreWeave's shares?
Image source: The Motley Fool.
CoreWeave’s recent second-quarter update was solid, especially on the top line. The company's revenue increased by 112% to $2.6 billion. True, its operating income of $19 million in the year-ago period turned into an operating loss of $49 million this time around. The bottom line also worsened, going from a loss per share of $0.60 in Q2 2025 to $1.14 per share. Some may see that as a bad sign. However, building AI computing capacity isn't cheap. The investment is worth it insofar as there are good reasons to believe CoreWeave can experience sustained demand for its services over the medium term.
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Originally published at www.fool.com.
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