Evercore ISI reaffirmed its Outperform rating and $175.00 price target on CoreWeave Inc. (NASDAQ: CRWV), emphasizing the company’s strong unit economics and scalable business model despite concerns about profitability in the GPU cloud sector.
The firm addressed investor concerns following recent media reports on Oracle’s GPU cloud margins, noting that CoreWeave’s approach remained sustainable and profitable even under heavy depreciation. Analysts cited several factors supporting the company’s economics, including multi-year, noncancelable take-or-pay contracts with an average duration of four to five years, prepayment structures covering 15–25% of total contract value, and near-total revenue derived from reserved capacity.
Evercore said CoreWeave’s agreement with NVIDIA (NASDAQ: NVDA) provided an additional safety net, obligating NVIDIA to purchase any unused GPU capacity through 2032. The firm also highlighted management’s view that GPUs could remain productive for over six years, citing continued use of older Volta units and demand for multi-year Grace Blackwell contracts.
Analysts estimated that a $3.2 billion total contract value deal could generate approximately $1 billion in capital expenditures, delivering 40–50% incremental EBIT margins and up to 70% incremental EBITDA margins once deployed. They attributed CoreWeave’s current mid-teens margin profile to aggressive reinvestment for growth and expected margins to expand materially as scale improves.
