Why CoreWeave Stock Skyrocketed 23% on Friday
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By Johnny Rice – Dec 19, 2025 at 6:00PM ESTKey PointsCitigroup resumed coverage with a buy rating but slashed its price target from $192 to $135 and added a high-risk designation.Micron's record earnings report helped ease broader concerns about an AI sector bubble.CoreWeave faces a fundamental challenge over time: its largest customers are also its biggest competitors.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: CRWVCoreWeaveMarket Cap$34BToday's Changeangle-down(22.64%) $15.32Current Price$83.00Price as of December 19, 2025 at 4:00 PM ETCoreWeave shares roared back to life today.Shares of CoreWeave (CRWV +22.64%) jumped today, finishing up 23%. The massive gain came as the S&P 500 and Nasdaq Composite gained 0.8% and 1.1%, respectively. After months of declines, CoreWeave investors rejoiced as shares finally had a big day -- recovering much of their post-peak drop -- after the stock received a buy rating from Citigroup, which renewed coverage on Thursday. ExpandNASDAQ: CRWVCoreWeaveToday's Change(22.64%) $15.32Current Price$83.00Key Data PointsMarket Cap$34BDay's Range$70.73 - $84.2952wk Range$33.52 - $187.00Volume70MAvg Vol30MGross Margin49.23% Citigroup's rating comes with some caveats The neocloud operator received a buy rating from Citigroup analysts who see significant upside in the volatile stock. However, the firm also dramatically reduced its previous price target from $192 to $135, and critically, Citi added its high-risk designation to the rating, citing "limited trading history and high customer concentration, which may expose shares to greater volatility." Image source: Getty Images. The timing couldn't have been better for CoreWeave shares, as a broader rally hit the AI market following Micron's massive earnings report on Wednesday. The memory chipmaker blew past analyst targets, helping to relieve anxiety about an AI bubble. CoreWeave walks a very fine line If there is a bubble, the risk to CoreWeave is existential. But a bubble isn't necessary for shares to tank long term. Its biggest customers are also its biggest competitors. If AI demand growth slows enough for hyperscalers to meet it with internal capacity, Microsoft and others will almost certainly opt to bring workloads in-house rather than pay a middleman like CoreWeave.Read NextDec 18, 2025 •By Justin PopeThis Artificial Intelligence IPO Stock Is Up 73% So Far in 2025.
Here Is Why It Could Be a Bust in 2026.Dec 15, 2025 •By Keithen DruryDown 50% From Its All-Time High, Should You Buy CoreWeave Before 2025 Is Over?Dec 12, 2025 •By Will HealyThis Artificial Intelligence Stock Could Be a Top Performer in the Next Market RallyDec 10, 2025 •By Jose NajarroCoreWeave Shared Critical Details About Its Recent Debt OfferingDec 9, 2025 •By Jose NajarroCoreWeave's New Debt Is a Game Changer From Its Traditional ApproachDec 8, 2025 •By Keithen DruryIf CoreWeave Does This 1 Thing, Its Stock Will Double in 2026About the AuthorJohnny Rice is a contributing writer for The Motley Fool covering tech stocks. He previously contributed to various financial publications.TMFJohnnyRiceStocks MentionedCoreWeaveNASDAQ: CRWV$83.00 (+0.23%) $+15.32CitigroupNYSE: C$114.86 (+0.02%) $+2.03Micron TechnologyNASDAQ: MU$265.92 (+0.07%) $+17.37*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement