CoreWeave Stock Has Fallen 57% in a Year: Wells Fargo Sees 162% Upside

Key Takeaways

• CoreWeave stock has fallen approximately 57% over the past year, closing at $61.12 on October 19, while Wells Fargo maintained its $160 price target.

• Wall Street’s consensus price target remains around $141, supported by expectations for substantial AI infrastructure revenue growth.

• Financing costs remain a major concern, with second-quarter net interest expense reaching $640 million and management forecasting higher costs in the third quarter.

• Wells Fargo’s $160 target looks possible under an optimistic scenario, but would require a substantial valuation recovery despite CoreWeave’s continuing losses.

CoreWeave (NASDAQ: CRWV) has lost approximately 57% of its value since October 16, 2025, when shares closed at $141.74. The stock finished October 19, 2026, at $61.12, highlighting the sharp decline as investors reassessed the company’s AI infrastructure financing costs.

Despite the decline, Wells Fargo analyst Michael Turrin maintained his $160 price target, suggesting approximately 162% upside from the October 19 closing price.

The central question is whether rapidly growing demand for AI computing can generate enough cash flow to justify the company’s expanding debt obligations and a much higher stock valuation.

Why Has CoreWeave Stock Fallen So Much?

CoreWeave’s recent decline reflects mounting concerns about the cost of financing its capital-intensive AI infrastructure business.

According to the company’s second-quarter earnings release filed with the SEC, revenue increased 112% year over year to $2.575 billion.

However, its net loss widened to $626 million from $290 million a year earlier, while net interest expense jumped to $640 million from $267 million.

That financing burden has become increasingly difficult for investors to overlook.

During its second-quarter earnings call, management projected third-quarter interest expense of $860 million to $940 million and full-year capital expenditures of $35 billion to $39 billion.

CoreWeave’s bonds also came under pressure in October, as TIKR reported, reflecting investor concerns about rising borrowing costs and the sustainability of debt-funded AI infrastructure expansion.

The stock declined approximately 25% during the week ending October 16 as those concerns intensified.

Nevertheless, Wall Street remains divided.

Wells Fargo maintained its $160 target on October 19, while Goldman Sachs upgraded CoreWeave to Buy, despite cutting its price target to $106 from $139.

Goldman’s move highlights the conflicting forces affecting CoreWeave: exceptionally strong demand for computing power alongside significant financing risks.