Goldman Sachs Raises CoreWeave Target Price to $139 on Strong Demand, Pricing, and Capacity, but Neutral Rating Awaits Software Validation

In an August 20 research report, Goldman Sachs noted that CoreWeave's Q2 revenue met expectations, EBIT margin exceeded consensus by 200 basis points, and its 2026 revenue guidance surpassed market expectations by 1%. Revenue backlog grew 5% quarter-over-quarter to $104 billion, with over $25 billion in new committed orders added since the start of Q3. Active power capacity increased from 1GW in Q1 to over 1.5GW, with contracted power capacity reaching 4.2GW.

Goldman Sachs raised its 12-month target price from $121 to $139, implying 53% upside from the current stock price, while maintaining a Neutral rating. Goldman believes CoreWeave's near-term visibility is clear: demand continues to outpace supply, pricing across both new and legacy GPU generations remains elevated, and capacity is expanding as planned.

New-generation chips (Blackwell, Vera Rubin) continue to set new price highs, with recent A100 contract deliveries now extending into 2029. Enterprise client mix is improving (Caterpillar, IBM, Nissan, ZF), and AI compute demand is spreading from tech giants to the real economy. Goldman expects EBITDA to grow from $3.1 billion in 2025 to $31.3 billion in 2028. The Neutral rating reflects a wait-and-see approach until software and platform services become more definitive contributors to margin, before taking a more positive stance.

[TechFlow]