JPMorgan upgraded CoreWeave (CRWV) to Overweight from Neutral on Thursday.
The bank raised its price target for the stock to $125 from $120. This revision follows a period of lackluster stock performance tied to concerns over high capital spending.
Analyst Samik Chatterjee identified a favorable pricing environment for GPU computing power. CoreWeave is shifting toward short-term contracts at premium prices to capture robust demand. Third-quarter contracts were signed at significantly higher rates than previous agreements. The strategy aims to increase both total revenue and profit margins.