3 Reasons CoreWeave Could Be the Hottest AI Stock in Q4

Key Points

• CoreWeave’s partnership expansion with the biggest names in AI suggests long-term growth potential.
• Analyst upgrades and bullish targets show institutions are buying in again.
• The stock is already trending north and the bulls are firmly in control.

Shares of CoreWeave Inc. NASDAQ: CRWV opened Thursday just under $128, aiming to add to the more than 50% in gains they’ve logged since the start of September. That kind of move would be considered impressive for most companies, but for CoreWeave, it feels like only the beginning. 

Since going public just before the summer, the artificial intelligence (AI) cloud specialist had already rallied more than 350% by the middle of June, before it collapsed through August on the back of weak earnings.

Now, though, the stock looks to be finding its legs again, and there are several reasons to think it could be gearing up for another major run into the year-end. Here are three of the best. 

Reason #1: Ties to OpenAI and NVIDIA

A powerful tailwind has emerged in recent weeks with CoreWeave’s partnerships among AI’s biggest players. On Thursday this week, the company revealed an expansion of its contract with OpenAI by up to $6.5 billion, pushing shares higher in that session’s early trading.

The deal reinforces a critical relationship and locks in recurring revenue visibility for a company still in its early public life.

The fact that OpenAI, arguably the most influential AI customer in the world, is committing billions to CoreWeave is a clear endorsement of its role in the broader AI ecosystem.

It comes on the heels of a fresh $6.3 billion order from NVIDIA Corp NASDAQ: NVDA, cementing CoreWeave’s position in the slipstream of AI’s dominant hardware supplier.

Together, these updates mark a significant shift in perception. Instead of being viewed as a risky upstart with messy earnings, CoreWeave is increasingly being seen as an indispensable partner to the biggest names in AI.

For investors, this validation provides the kind of confidence and visibility that should fuel further momentum into Q4.

Reason #2: Analysts Back in Force

August’s ugly report may have dented confidence for a few weeks, but Wall Street is already getting back on board in a big way. This week alone, the team at Wells Fargo upgraded its rating on CoreWeave from Equal Weight to Overweight, echoing the stance taken by Raymond James last week.

Deutsche Bank, meanwhile, has been saying it expects “significant upward revisions” in the weeks ahead, further fueling the recovery momentum.

That kind of cluster of bullish calls is rarely a coincidence. It suggests that smart money is positioning for another move higher, even as retail investors might still be processing August’s miss.

The fact that updated price targets range as high as $180 implies a targeted upside of more than 30% speaks volumes, and gives the bulls plenty of ammunition to get the rally going again.

Reason #3: Momentum Is Surging

Beyond the strengthening fundamentals and bullish analyst outlook, CoreWeave’s technical picture is starting to look explosive. After falling more than 50% from June’s peak, the bears ran out of steam and threw in the towel at the start of September.

Since then, the stock has gained more than 50%, and key momentum indicators like its RSI and MACD are flashing green, green, green.

That matters because sentiment plays a significant role in early-stage, high-growth stocks. Once momentum starts to build, it often snowballs as short-term traders pile in, pushing the stock further and faster than fundamentals alone might justify. 

For CoreWeave, the August high around $150 is the first big test - and if it can break through there, it opens the door to another leg higher that could easily cement its place as one of Q4’s hottest AI trades.

Why Q4 Could Be Explosive

Pulling it all together, CoreWeave has three things going for it right now: expanding contracts with marquee customers, heavyweight analyst backing, and a chart that has already gained 50% this month - all the ingredients you’d want for a sustained rally into the end of the year.

Of course, risks remain. The company’s August earnings report was a reminder that execution is critical, and volatility will be part of the ride. But for those with the stomach to handle sharp swings, CoreWeave is one of the more compelling AI names heading into Q4.