DA Davidson upgraded CoreWeave (NASDAQ: CRWV) from Neutral to Buy and raised its price target to $110 from $68, citing strengthening demand for compute and a more favorable risk-reward profile heading into 2026.

The firm said investor concerns around CoreWeave's exposure to a narrow set of outcomes tied to future AI compute demand were well understood, noting that neocloud providers remain heavily leveraged to sustained growth in AI workloads. While DA Davidson reiterated its long-term bullish stance on artificial intelligence, it said CoreWeave had historically lacked a clear catalyst to materially reduce perceived counterparty risk and capital structure overhang.

The analysts said that outlook had changed, as they now believed the probability of meaningful de-risking events increased materially in 2026. These potential developments were seen as capable of reducing both counterparty exposure and balance-sheet concerns, allowing for a more constructive view on valuation.

DA Davidson said downside risks were already largely reflected in the current share price, while upside potential had improved due to strengthening compute demand and a clearer path toward risk reduction. As a result, the firm adopted a more positive stance on the stock.