Truist Securities raised its CoreWeave price target to $165 from $155, implying nearly 88% upside, arguing the cloud infrastructure company's 25% July price hike more than offsets Nvidia's reported GPU cost increases of more than 15%.
Truist Securities reiterated its buy rating on CoreWeave on Monday and lifted its price target on the cloud infrastructure company to $165 per share from $155, implying nearly 88% upside from Friday's closing price, as the firm argued the company's ability to raise its own prices more than offsets surging GPU costs.
The call comes amid a broader industry reckoning over the cost of Nvidia's latest graphics processors. Nvidia has reportedly raised prices on its newest GPUs by more than 15%, a move that analysts say has threatened to compress CoreWeave's margins — the company purchases GPUs from Nvidia and other chipmakers, then rents out that compute capacity to cloud customers.
CoreWeave responded in July by hiking prices across its inventory by 25%, according to Truist analyst Arvind Ramnani, who argued that move has given the company meaningful insulation from the cost pressure.
"Pricing power [is] more than offsetting rising GPU costs," Ramnani said in a note to clients Monday. "We expect CRWV's higher pricing to largely flow through to margins in 2H26 as NVIDIA's increases are expected to affect systems shipped early next year."
Ramnani's analysis projects that contribution margins on future longer-duration contracts could expand from approximately 24% to roughly 33%. He added that shorter-duration deals and the re-contracting of prior-generation GPUs could generate additional upside, noting that only Blackwell and Vera Rubin systems are affected by Nvidia's price increases.
"We see minimal risk to CoreWeave's contracts and continue to view the environment as supply-constrained," Ramnani wrote.
The broader Wall Street consensus on CoreWeave remains constructive. Of the 40 analysts covering the stock tracked by LSEG, 27 carry a buy or strong buy rating. Shares have risen 23% so far in 2026.
The upgrade reflects a wider pattern in AI infrastructure analysis, where growing GPU memory and storage demand — driven by accelerating AI workloads — has pushed hardware costs higher across the supply chain. CoreWeave occupies a pivotal position in that chain, acting as a conduit between Nvidia's chip output and enterprise customers seeking on-demand GPU compute.
Nvidia itself is set to report quarterly earnings Wednesday, a release that analysts and investors are watching closely for signals on pricing trajectory, shipment volumes, and demand visibility into 2027.
Truist's revised target reinforces a view that CoreWeave's contract structure and pricing leverage give it enough runway to absorb near-term cost inflation while still expanding margins — a thesis that will face its next test as the company begins locking in longer-duration deals under the new rate card.
Sara Montes de Oca is the Editor in Chief of TechEchelon. Previously a correspondent and producer in Washington, D.C., covering business, finance, and politics.
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