NEW YORK, July 20, 2026, 10:14 EDT
- CoreWeave gained 5.5% to $77.20 at the start of U.S. trading. Regular trading in the U.S. had begun.
- BofA Securities, a unit of Bank of America NYSE:BAC, reiterated its Buy rating and maintained its price target at $140.
- Initial estimates show backlog at 2.9 times Bank of America’s projected capex. Interest for Q1 reached 25.5 times adjusted operating income.
CoreWeave NASDAQ:CRWV stock rose 5.5% in early trading on Monday as BofA maintained its Buy rating. The bank increased its forecast for 2026 capital expenditures to $34 billion from $29 billion.
The $34 billion amount is based on analysts’ estimates, rather than new guidance from the company. CoreWeave’s most recent capital expenditure outlook remains between $31 billion and $35 billion.
The focus of the call moves from demand to implementation. BofA projects an operating margin of 2.4% for Q2, less than the Street’s 2.8% forecast. For Q4, BofA anticipates 14.6%, in comparison to CoreWeave’s 1.0% adjusted margin reported in Q1.
The bridge is steep. Active power reached over 1 gigawatt by the end of the quarter, while contracted power was above 3.5 gigawatts.
A basic initial calculation of the reported thresholds yields roughly 29%. The firm has not released precise data, so the real activation ratio could be different.
The financing requirement is more stringent. Net interest expense for Q1 totaled $536 million, while adjusted operating income stood at $21 million. Based on an early estimate, interest charges were 25.5 times that figure.
| Conversion measure | Company disclosure | Estimate or preliminary comparison |
|---|---|---|
| 2026 capital spending | $31 billion-$35 billion forecast | BofA: $34 billion, roughly 17% higher than previous estimate |
| Operating-margin path | 1.0% adjusted for Q1 | BofA: 2.4% Q2; 14.6% Q4 |
| Revenue backlog | $99.4 billion | 2.9 times BofA’s capex estimate |
| Power conversion | Over 1 GW operational; more than 3.5 GW under contract | Preliminary 29% active |
| Interest burden | $536 million in interest; $21 million adjusted operating income | 25.5 times, preliminary |
Company data reflect first-quarter actuals or projections from management. Analyst projections are sourced from BofA. Early calculations use published limits and straightforward arithmetic.
The order book continues to offer support. The backlog reached $99.4 billion, almost triple BofA’s projected capex. This does not represent a funding ratio, as the agreements cover several years. Revenue is recognized only when sites are powered and equipped.
First-quarter revenue rose sharply, more than doubling to $2.08 billion. Adjusted EBITDA came in at $1.16 billion, reflecting a 56% margin. CoreWeave, however, reported an operating loss of $144 million and a net loss totaling $740 million.
Shares in Neocloud peer Nebius Group NASDAQ:NBIS advanced 4.3%. Data-center builder Applied Digital NASDAQ:APLD picked up 7.5%. Meta Platforms NASDAQ:META dropped 1.3%, reflecting a mixed tone across AI-infrastructure names, though most traded higher.
Meta has begun early negotiations to potentially provide as much as $10 billion in computing capacity to Anthropic. The talks are still in the initial stages and might not lead to a deal. Chief Executive Mark Zuckerberg stated cloud services were “definitely on the table.” Reuters
Meta continues as a key customer for CoreWeave, having agreed in April to a new $21 billion contract in addition to a previous $14.2 billion deal. The most recent contract extends until December 2032.
John McPeake, an analyst at Rosenblatt, stated GPU shortages are “the norm right now across the industry.” He maintained his $250 price target following the Meta cloud report. Rosenblatt additionally stated it does not think Meta is able to resell leased CoreWeave capacity. Rosenblatt Securities
Gary Alexander, a contributor to Seeking Alpha, recommended investors take advantage of the dip on Monday. He pointed to multi-year rental agreements and the $21 billion Meta contract as reasons. Alexander revealed a beneficial long stake in CoreWeave.
Risks are still elevated. Delays in power supplies, rising component costs, and increased funding expenses could hinder margin growth. Heavy reliance on major clients and Meta’s cloud strategy may also put future pricing under strain.
Despite Monday’s rebound, the stock was still trading roughly 50% under its $153.20 peak. BofA’s price target of $140 signals an approximate 81% potential rise versus the lagging quote. This is an analyst projection rather than a forecast from CoreWeave.
This is the current focus. Contracted megawatts need to be converted to revenue. Revenue must turn into operating profit at a rate that surpasses the pace of rising interest.
Related articles: NYSE:BAC
