Why Did CoreWeave Stock Surge Over 17% Today?

• Citi noted that while the company’s bookings jumped 85% in the third quarter, revenue was impacted by supply constraints and data center delays.
• CoreWeave joined the DOE-backed Genesis Mission on Thursday.
• It plans to make its purpose-built AI cloud platform available for advanced scientific workloads.

CoreWeave Inc (CRWV) stock rose more than 17% on Friday amid Wall Street optimism and the company’s participation in the Department of Energy’s (DOE) Genesis Mission, which provides AI cloud support for scientific research.

CRWV was among the top trending tickers on Stocktwits at the time of writing.

Citi Resumes Coverage

Citi resumed coverage of the stock with a ‘Buy’ rating but cut its target price to $135 from $192, following a period of restriction, according to The Fly. This still represents a 70% upside from the current stock price of $79.

Citi highlighted an 85% quarter-over-quarter surge in bookings in the third quarter, while noting that revenue was held back in the near term by supply constraints and delays in activating new power and data center capacity. The firm said demand remains strong and expects capacity to stay on track through the fourth quarter.

DOE’s Genesis Mission

On Thursday, CoreWeave joined the Genesis Mission, a program that connects research institutions, supercomputing centers, and AI platforms to improve access to advanced computing resources and large-scale datasets.

As part of the effort, CoreWeave plans to make its purpose-built AI cloud platform available for advanced scientific workloads.

Earlier this year, the company launched CoreWeave Federal, a unit focused on providing secure AI cloud services to U.S. government agencies and defense partners. The platform is being prepared to meet federal requirements, including FedRAMP authorization, to support large-scale AI workloads.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits shifted to ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘high’ message volumes. One user sounded bullish on the stock as they believe a double bottom pattern has been confirmed.

However, another user suggested a profit-booking opportunity.

On Friday, CRWV stock recorded its biggest intraday gain since September 10. However, the stock has been under selling pressure lately, declining more than 36% over the past three months.

CoreWeave operates 41 data centers, including eight that came online in the third quarter. The footprint represents about 90 megawatts of active power and roughly 2.9 gigawatts of contracted power, according to an S&P report earlier this month.

Read also: Amicus Stock Surges To Near 2-Year Highs On BioMarin's $4.8B Buyout Deal

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