Bank of America reiterated a Buy rating on CoreWeave stock and raised its 2026 capital expenditure forecast to $34 billion, signaling confidence in the AI infrastructure provider despite recent share pressure from competitive concerns.
In a note published July 20, BofA Securities maintained its $140 price target on CRWV stock, which currently trades at $73.21, down 52% from its 52-week high of $153.20. The analyst increased its capex estimate from $29 billion previously, reflecting changing market dynamics in hardware component buildout and pricing as CoreWeave scales its data center footprint.
BofA expects CoreWeave to post an operating margin of 2.4% in the second quarter of fiscal 2026, slightly below the Street consensus of 2.8%. However, the bank projects margins will improve sequentially through the remainder of the year, reaching 14.6% in the fourth quarter of fiscal 2026, up from 1.0% in the first quarter.
The capex elevation underscores the intensity of demand for AI compute capacity. In March 2026, CoreWeave Chief Executive Brannin McBee described demand for the company’s AI infrastructure as “overwhelming” and “insatiable,” noting that 2026 was “broadly sold out” of available capacity. The company has signed take-or-pay contracts worth nearly $99.4 billion, including a $21 billion multi-year agreement with Meta that runs through 2032.
Competition Pressures but Demand Outpaces Supply
CoreWeave shares fell 12% over the past week amid investor concerns about competition from Meta and SpaceX, both of which have announced plans to sell excess AI computing capacity. Meta announced in early July 2026 that it is building a cloud business to sell access to AI computing power and models, a move that spooked the market and initially triggered a 14% decline in CRWV stock.
BofA dismissed structural competitive concerns, arguing that demand for AI compute far exceeds supply and that access to capacity—not provider selection—remains the primary gating factor. The bank noted that profitability is becoming a greater focus for investors, and as incremental active power drives revenue recognition, CoreWeave is expected to demonstrate strong operating leverage.
The revised capex guidance reflects CoreWeave’s aggressive buildout to capture sustained demand. In 2025, the company spent $14.9 billion on capital expenditures, making the 2026 forecast of $30 billion to $35 billion more than double that investment. The expansion targets the addition of 5 gigawatts of data center capacity by 2030, as AI workloads continue to outpace available infrastructure globally.
Sources
- Investing.com — BofA reiteration of Buy rating, $140 price target, capex raise to $34 billion, operating margin forecasts, and competitive landscape assessment
- Yahoo Finance — CoreWeave CEO commentary on “insatiable” demand and 2026 capacity sold-out status
- Bloomberg — Meta’s announcement of cloud business to sell excess AI computing capacity
- TechCrunch — Meta and SpaceX plans to sell excess AI compute
- Data Center Dynamics — CoreWeave capex plans and 5GW expansion target by 2030
