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Even before the latest stock market upswing that has taken effect in the extended session leading to April 8, CoreWeave (NASDAQ: CRWV) stock has been outperforming most of the technology sector. Shares are up 7.46% year-to-date (YTD) and 16.31% over the last week of trading. In the extended session, the stock rose 7.14%, moving from $85.24 at the latest close to $91.33 at press time.
Despite the strong price action, Bernstein’s Madison Rezaei reiterated a bearish outlook on Wednesday. The analyst confirmed that CoreWeave is still expected to “Underperform,” effectively a “Sell” rating, and projected the stock could fall 38.68% to $56 over the coming 12 months.
Rezaei argued that CoreWeave, which transitioned from a Bitcoin miner into a cloud computing firm, is unlikely to be a major beneficiary of the proliferation of artificial intelligence (AI), even if bullish forecasts for the sector prove correct.
The analyst also characterized the likelihood of Nvidia stepping in to support CoreWeave as a weak “insurance policy over the long term,” noting that such a move could be relatively inexpensive for the chipmaker.
Bernstein said its bearish view is centered on structural revenue rather than skepticism about CoreWeave’s ability to increase the value of its contracts and expand margins.
Bernstein’s outlook contrasts with the broader Wall Street consensus. On average, CoreWeave shares are expected to rise about 34% to $114.20 over the next 12 months. The stock is also rated a “Moderate Buy” overall, based on data TipRanks retrieved from the stock analysis platform on April 8.

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