CoreWeave Inc., a cloud-computing provider backed by Nvidia, saw its stock rise over 8% following the initiation of coverage by Wall Street analysts. The company, which specializes in providing GPU-as-a-service for AI applications, completed its IPO in late March, with Nvidia purchasing $250 million worth of shares to anchor the price at $40. Analysts from investment firms such as JPMorgan, Barclays, and Jefferies have given CoreWeave a Buy rating, citing the company's strong position in the AI market despite concerns over its stock's volatility. Jefferies analyst Brent Thill estimates that shares could rise over 40% to $51 in the next 12 months, highlighting CoreWeave's significant holdings, with the fifth- to sixth-largest pool of Nvidia GPUs. However, not all analysts are bullish. Citi has given CoreWeave a Neutral rating, expressing caution due to the company's heavy reliance on Microsoft, which accounted for 62% of its 2024 revenue, and another customer making up 77% of total revenue from two clients. Additionally, CoreWeave faces $7.5 billion in debt repayments by the end of next year, adding to the concerns about its financial stability. CoreWeave also recently secured a $12 billion contract with OpenAI, amidst Big Tech's projected $325 billion spend on AI infrastructure in 2025. The mixed reception from analysts reflects the broader market's uncertainty about CoreWeave's business model and its ability to navigate the volatile AI landscape.