Yahoo Finance

(Bloomberg) -- CoreWeave Inc.’s rally is running so hot it’s leaving analysts’ stock predictions in the dust. Citi Research more than doubled their 12-month price target on the stock to a Wall Street high Wednesday morning. When the market opened shares blew past it in the first 15 minutes of trading.

Most Read from Bloomberg

• Can Frank Gehry’s ‘Grand LA’ Make Downtown Feel Like a Neighborhood?

• Chicago’s O’Hare Airport Seeks Up to $4.3 Billion of Muni Debt

• NJ Transit Makes Deal With Engineers, Ending Three-Day Strike

Marquee partnerships, optimistic revenue outlook and a renewed enthusiasm for all things artificial intelligence have driven CoreWeave to all-time highs, bucking some critical reviews from Wall Street. Gains stretched into the fourth-consecutive session, to close at a record. The stock has more than doubled from a late March initial public offering at $40 a share.

The stock soared 19% to close at $107.39 Wednesday trading after Citi analysts led by Tyler Radke boosted their price target to $94 from $43 while sticking to their neutral, high-risk rating. CoreWeave’s first quarterly earnings report as a public company, which beat on revenue, should ease worries that demand was waning, they said.

The report reinforced the hyperscaler’s high-growth profile, “and likely assuages investor concerns around AI capex/infrastructure slowing,” the analysts wrote raising their estimates for second-quarter and full-year revenue as they slashed the discount they were applying to the stock’s valuation.

Bullish investors have been cheered by last Thursday’s deal worth as much as $4 billion for the company to provide additional cloud computing capacity for OpenAI, a leader in the space. Though gains were erased that day by an analyst’s downgrade. The following day the rally resumed after Nvidia Corp. reported a larger-than-expected stake in the company, shares jumped 22% to a record high.

Gains continued this week as Nvidia’s Chief Executive Officer Jensen Huang kicked off Computex, Asia’s biggest electronics forum, in Taiwan and outlined plans to let customers use rival chips in data centers built around its technology, a nod to in-house development by major clients like Microsoft Corp.

But Wall Street skeptics are numerous with with eight of the analysts tracked by Bloomberg recommending holding the stock and two advising to sell. Eight recommend buying CoreWeave.

Bears point out CoreWeave’s earnings were mixed, the report had initially sent shares lower. And the company’s revenue is tied to only a handful of customers. D.A. Davidson’s downgrade last Thursday compared CoreWeave to WeWork and said it is “not worth scaling.” It was the only day of the past eight that the stock ended the trading day lower.