CoreWeave should make more gains, even as rising graphics processing units costs increase its capital expenditures, according to Truist Securities. The bank has a buy on the cloud infrastructure name. It raised its price target on shares to $165 from $155, implying nearly 88% upside from Friday's close. "Pricing power [is] more than offsetting rising GPU costs," analyst Arvind Ramnani said Monday in a note to clients. "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." "Our analysis suggests contribution margins on future longer-duration contracts could increase from ~24% to ~33%. Shorter-duration deals and re-contracting of prior-generation GPUs could drive further upside (only Blackwells and Vera Rubins impacted)," Ramnani wrote. GPU prices are rising as demand for memory and storage solutions surges due to the artificial intelligence boom. That has led Nvidia to reportedly raise prices for its latest GPUs by more than 15% — a change that has threatened to hurt CoreWeave's margins, according to Truist. However, CoreWeave, which buys and rents out graphics processors from Nvidia and other chipmakers, hiked prices across its inventory by 25% in July to soften the impact of rising GPU costs on its margins, per Ramnani. "We see minimal risk to CoreWeave's contracts and continue to view the environment as supply-constrained," Ramnani wrote. Truist Securities' call falls in line with consensus on the Street. Of the 40 analysts covering CoreWeave, 27 have a buy or strong buy on the stock, LSEG data shows. Shares have risen 23% in 2026.
