HSBC analysts have issued a bearish assessment of CoreWeave stock despite recent market enthusiasm for the GPU cloud service provider. The investment bank assigned a reduced rating with a $32 price target, representing a 77% decline from current trading levels near $143. Analyst Abishek Shukla argues that GPU cloud services are facing increasing commoditization pressures that limit their profitability potential.
CoreWeave generates lower returns compared to traditional cloud computing giants, such as Amazon Web Services. The company recorded thirty-two percent asset turnover during the first quarter of 2025, while hyperscale competitors achieved seventy-six percent efficiency rates. OpenAI has failed to deliver on a promised fifteen...