CRWV’s Deep NVDA Integration Makes It A Go-To Choice, Says Morningstar — Analysts Say META's Planned Cloud Move Reinforces AI Compute Boom

Morningstar argued that Meta's reported plans to sell excess AI computing capacity reinforce the persistent supply-demand imbalance of AI infrastructure rather than signal a weakening market.

• Morningstar estimates U.S. cloud computing revenue will exceed $1 trillion before 2030, creating a long runway for both hyperscalers and specialized AI cloud providers.
• The firm has a fair value estimate of $106 on CoreWeave shares, implying an upside potential of about 31% from current levels.
• Morningstar said CoreWeave's long-term growth will hinge less on winning new contracts than on delivering computing capacity on schedule.

Shares of CoreWeave Inc. (CRWV) were in focus on Monday after analysts at Morningstar stated in a note that the company’s close relationship with Nvidia Corp. (NVDA) makes CoreWeave a go-to choice for customers.

The firm also downplayed concerns of Meta Platforms Inc.’s (META) planned move into the cloud computing space, saying that it reinforces the AI compute boom.

Morningstar has a fair value estimate of $106 on CoreWeave shares, implying an upside potential of about 31% from current levels.

CoreWeave shares were up more than 13% in Monday’s opening trade. CRWV was among the top trending tickers on Stocktwits at the time of writing.

AI Cloud Demand Still Outpaces Supply, Says Morningstar

Morningstar argued that Meta's reported plans to sell excess AI computing capacity reinforce the persistent supply-demand imbalance of AI infrastructure rather than signal a weakening market.

The firm estimates U.S. cloud computing revenue will exceed $1 trillion before 2030, creating a long runway for both hyperscalers and specialized AI cloud providers.

At the same time, it said the recent selloff in neocloud stocks reflects investor concerns over the lack of durable competitive advantages as AI compute becomes increasingly commoditized.

Morningstar Highlights What Will Underpin CRWV’s Long-Term Growth

Morningstar said CoreWeave's long-term growth will hinge less on winning new contracts than on delivering computing capacity on schedule.

The firm identified land, power and equipment constraints as the biggest near-term risks for AI infrastructure providers, warning that delays could cause companies to miss revenue targets and lose market share.

Morningstar said in its note that it agrees with CoreWeave management’s long-term outlook that its adjusted operating margin can reach 25%-30%, similar to other AI cloud providers. “We expect the company to deliver this level of margin in 8-10 years if it can scale revenue rapidly,” the firm added.

Morningstar Sees Long-Term Competitive Risks For CRWV

Despite its optimistic demand outlook, Morningstar cautioned that neocloud providers like CoreWeave lack durable competitive advantages.

The firm said raw AI computing power has become increasingly commoditized, meaning additional supply could weigh on long-term returns on the heavy capital investments required to build AI infrastructure.

What Is META Planning?

According to a Bloomberg report last month, Meta is developing plans for a cloud infrastructure business to sell excess AI compute capacity to outside customers.

The company is also said to be evaluating another plan to provide access to various AI models hosted on its existing infrastructure.

Meta’s plans would put the company in competition with Amazon.com Inc.’s (AMZN) AWS, Microsoft Corp.’s (MSFT) Azure, and neocloud providers like CoreWeave.

Meta's relationship with CoreWeave predates its reported cloud ambitions. In April this year, the companies signed an expanded $21 billion AI cloud contract, building on a $14.2 billion agreement reached in September 2025.

What Retail Investors Think Of CRWV Stock

Retail sentiment on Stocktwits around CoreWeave trended in the ‘extremely bullish’ territory, with message volumes at ‘high’ levels at the time of writing.

CRWV stock is up 13% year-to-date, but down 23% over the past 12 months. The Invesco QQQ Trust (QQQ) is up 26% over the past 12 months, while the iShares U.S. Technology ETF (IYW) is up 37%.

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