UBS Initiates CoreWeave with Buy Rating, Cites AI Demand

By EC Assets · Published 23 September 2026

UBS has initiated coverage of CoreWeave with a Buy rating. The investment bank set a $120 price target on CoreWeave shares, indicating a potential 38% upside from Tuesday's close. This coverage marks a non-consensus call. CoreWeave operates as a data center provider at the center of the artificial intelligence infrastructure buildout. The company delivered strong financial results in its second quarter. It reported 112% revenue growth and $1.51 billion in adjusted EBITDA. CoreWeave also confirmed robust AI infrastructure demand with a $104 billion backlog. The company raised its full-year revenue guidance. CoreWeave ended the second quarter with 1.5 gigawatts of active power. It added nearly 500 megawatts during the quarter, with more than 300 megawatts installed in June alone. This indicates a significant portion of new capacity became active towards the end of the quarter. CoreWeave shares have experienced volatility, tripling in a rally but tumbling almost 40% from their May highs. Debt concerns have spooked investors. However, UBS's analyst believes the recent selloff has been overblown. CoreWeave announced plans to raise $3 billion through a convertible debt offering. This highlights the funding required to support its AI infrastructure expansion. Other market participants have also assessed CoreWeave. Some analysts view the company's debt as a risk despite its strong growth. CoreWeave’s shares have been rising for weeks ahead of its second-quarter update, likely due to perceived strength in the AI industry. This article is intended for informational purposes only. It does not constitute investment advice.