CoreWeave gets 'neutral' rating as D.A. Davidson starts coverage

D.A. Davidson & Co initiates coverage of cloud services provider CoreWeave with "neutral" rating and $47 PT

Nvidia-backed NVDA.O CoreWeave is targeting a valuation of up to $32 bln on a fully diluted basis in its U.S. initial public offering

Brokerage says CoreWeave is the largest in the new neocloud category, specializing in offering high-performance computing resources specifically tailored for AI workloads

Brokerage says CoreWeave plays a strategic role for both Microsoft MSFT.O and Nvidia

MSFT has been utilizing CoreWeave and Oracle ORCL.N for overflow capacity to run OpenAI's ballooning training needs, while keeping the more desirable inference workloads — brokerage

"We believe Microsoft will move even further away from supporting OpenAI's training needs, which may be why OpenAI signed directly with CoreWeave," D.A. Davidson says

NVDA's investment in CoreWeave has turned it a significant customer of chip co's GPUs — brokerage