GF Securities Initiates CoreWeave Coverage with Buy Rating Amid AI Infrastructure Boom
GF Securities cites expected profitability by 2028 and strong relationships with Microsoft, OpenAI, and Meta as key drivers for its endorsement of the US neocloud provider.
Chinese brokerage GF Securities has initiated coverage of US neocloud provider CoreWeave with a "Buy" rating, a move considered notable given the current geopolitical distrust between China and the United States regarding artificial intelligence technology. The firm’s report highlights CoreWeave’s significant revenue growth in the first quarter of 2026 and its expanding partnerships within the financial sector, while acknowledging the company’s current unprofitability and high debt levels.
GF Securities cited long-term AI demand, an exclusive focus on AI infrastructure, and an expected inflection to profitability by 2028 as key drivers for the rating. The brokerage noted that CoreWeave is positioned as a long-term winner in the AI infrastructure boom, backed by first-mover GPU deployment, best-in-class efficiency, and long-term agreements (LTAs) with major AI hyperscalers.
The endorsement comes as US stock markets have risen on the back of a summit in Beijing between US President Donald Trump and Chinese President Xi Jinping. The agenda includes trade, artificial intelligence, and the Strait of Hormuz. Following US approval of H200 chip sales to Chinese firms, Nvidia shares surged more than 2%, reflecting broader market optimism about AI hardware demand.
CoreWeave’s financial performance in the first quarter of 2026 presented a mixed picture. The company generated $2.08 billion in revenue, a 111.6% increase over the previous year, outpacing expectations. However, it reported a loss of $1.40 per share, wider than the projected $1.20, and operating loss margins widened to 7% from 3%. Despite the bottom-line miss, net cash from operating activities soared to approximately $3 billion, up from $61 million in the prior year, bolstered by a $1 billion reduction in accounts receivable.
The company’s balance sheet remains a point of scrutiny, with a cash position of $2.2 billion weighed against short-term debt obligations of $8.1 billion. Nevertheless, CoreWeave has secured massive commitments from key partners. Microsoft accounted for approximately 62% of annual revenue by 2024, while OpenAI has committed roughly $22.4 billion through a five-year agreement expanded twice. Meta has also solidified its relationship with an agreement worth roughly $35.2 billion running through December 2032.
Beyond hyperscalers, CoreWeave is expanding its footprint in the financial sector. In April 2026, Jane Street entered into a $6 billion AI cloud agreement, bringing the company’s financial services backlog to $10 billion. Additionally, CoreWeave began integrating its services more deeply with Google Cloud through new interconnect and orchestration services announced in April 2026.
Valuation metrics for CoreWeave present a divided outlook. The forward price-to-sales ratio of 4.36x sits above the sector median of 3.30x, indicating a premium pricing. Conversely, the forward price-to-cash-flow ratio of 6.15x is lower than the sector median of 18.98x, suggesting greater efficiency in cash flow generation. Analysts have assigned an overall "Moderate Buy" rating to the stock, with a mean target price of $133.26, denoting an upside potential of 23.9% from current levels.
