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CoreWeave Soars After DOE Genesis Mission Win as Citi Reinstates Buy

Government validation reshapes expectations despite high leverage.

Overview

  • Shares jumped roughly 19% to 23% after Dec. 18 confirmation that CoreWeave was selected for the Department of Energy’s Genesis Mission.
  • Citigroup renewed coverage with a buy rating, cut its price target to $135 from $192, and applied a high‑risk label due to customer concentration and limited trading history.
  • Citi reported that supply and powershell capacity constraints shifted some Q4 revenue and capital spending into Q1 2026, while management checks pointed to growing capacity and bookings.
  • CoreWeave posted Q3 revenue of $1.365 billion, up 134% year over year, and disclosed a $55.6 billion backlog supported by multi‑year take‑or‑pay agreements with major AI customers.
  • Leverage remains elevated with about $14 billion of debt and a recent $2.25 billion convertible note raise, contributing to high interest expense and GAAP losses despite strong adjusted EBITDA.