/The%20CoreWeave%20logo%20displayed%20on%20a%20smartphone%20screen_%20Image%20by%20Robert%20Way%20via%20Shutterstock_.jpg)
JPMorgan analyst Mark Murphy remains bullish on CoreWeave (CRWV) heading into its earnings release after market close on Tuesday, Aug. 12.
The artificial intelligence (AI) infrastructure firm is in focus today because its lockup period during which insiders are prohibited from selling shares after the initial public offering (IPO) also ends on Thursday, Aug. 14.
CoreWeave stock has been a lucrative investment in 2025. The company priced its IPO at $40 only but is going for $139 at the time of writing, indicating some 250% return in less than five months.
Why Did JPM Issue a Constructive Note on CoreWeave Stock
Murphy maintained his “Overweight” rating on CRWV this morning, citing the nearly $12 billion AI data center deal it announced with OpenAI in early March.
“Our sense is that CoreWeave Inc’s opportunities are going to get bigger and lumpier, likely to the investors’ surprise,” he told clients in a research note on Monday.
JPM issued a constructive note in favor of CRWV shares today also because it sees the company’s long-term AI ramp as “clear” and “intact,” and sees “continued momentum in its business pipeline” in the second half of 2025.
Why CRWV Shares Remain a Risky Investment at Current Levels
Investors should note that CoreWeave shares are currently going for a price-sales (P/S) ratio of more than 22x.
While significantly lower compared to Nvidia (NVDA), that multiple still looks overly stretched given the AI infrastructure company is yet to turn a profit. Consensus is for it to lose $0.49 on a per-share basis in its Q2.
Plus, insiders and early investors may sell CRWV en masse as the lockup period expires later this week, especially since the AI stock has experienced nothing short of a cosmic run in recent months.
This profit-taking could trigger a sharp pullback in CRWV stock over the next few weeks.
How Wall Street Recommends Playing CoreWeave
Note that other Wall Street firms recommend caution in playing CoreWeave stock at current levels.
According to the Barchart, the consensus rating on CRWV shares currently sits at “Hold” only with the mean target of about $96 indicating potential downside of more than 30% from here.
