CoreWeave (CRWV) has been in a sharp uptrend in recent sessions as investors continue to cheer its exceptional growth in Q1. 

Plus, a regulatory filing confirmed this week that Nvidia (NVDA) ended the first quarter with a $900 million stake in the AI infrastructure firm as well. 

Including its post-earnings gain, CoreWeave stock is up a whopping 140% versus its recent 1-month low. 

Is It Time to Move to the Sidelines in CoreWeave Stock?

CoreWeave saw its revenue soar by more than 400% on a year-over-year basis to $982 million in Q1, indicating extraordinary demand that dismissed broader concerns of an AI slowdown. 

The artificial intelligence company sees its revenue coming in at $5 billion this year, which would mean a staggering 4.6x growth versus 2024. 

Additionally, Nvidia’s latest filing confirms that CRWV has its vote of confidence as well. 

Still, Ben Reitzes, a senior Melius Research analyst, says there are significantly better means of gaining exposure to the AI infrastructure market than CoreWeave stock in 2025.  

His $67 price target on CRWV shares indicates potential downside of more than 15% from here. 

Why Is Reitzes Cautious on CRWV Shares for 2025?

Ben Reitzes is not particularly fond of CoreWeave’s reliance on asset-backed financing. 

In a recent interview with CNBC, he also called out the firm’s guidance for up to $23 billion of capital expenditures in 2025 as it assumes a “ton of terminal growth,” which he’s not entirely convinced will come to pass. 

Another major red flag on the AI stock is the negative $19 billion its management expects in free cash flow this year. 

Reitzes agreed that CoreWeave was increasingly emerging as an exciting name but said the likes of Nvidia and Broadcom (AVGO) were still better as AI infrastructure plays since they offer much more stability. 

It just “doesn’t get better than” NVDA and AVGO, he argued in the said interview. 

What Is Wall Street’s Recommendation for CoreWeave?

Note that other Wall Street analysts are significantly more bearish on CoreWeave stock for 2025. 

According to Barchart, the consensus rating on CRWV shares currently sits at “Moderate Buy” but the mean target of about $50 indicates potential downside of more than 35% from current levels.