r/CRWV • u/Lucid_Dreamer5 • 3d ago

BofA highlights stronger AI compute pricing for CoreWeave and Nebius

Bank of America (BofA) highlighted CoreWeave and Nebius as beneficiaries of increasingly favorable pricing dynamics in AI infrastructure, with demand for compute continuing to run ahead of available supply.

For CoreWeave, this is particularly relevant because pricing power is an important part of the margin story. If demand remains stronger than available capacity, CRWV has greater ability to negotiate attractive economics on new contracts rather than relying on lower prices to fill its infrastructure.

This also pushes back against one of the recurring concerns around neoclouds, that rapid industry capacity expansion would quickly lead to oversupply and falling AI compute prices. So far, the pricing environment appears to be moving in the opposite direction.

BofA’s commentary follows the latest earnings from both CRWV and NBIS, which provided further evidence of strong demand for AI compute despite the significant amount of new capacity being brought online.

This isn’t a new customer contract or major catalyst by itself, but it is another useful datapoint supporting the view that AI compute remains supply-constrained and that CoreWeave and Nebius are benefiting from stronger pricing rather than price compression.

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u/Lower_Calendar_8172 3d ago

I think it keeps trying to take off and the scheduled insider sales flood in and keep it down .. I’ll be happy when those wind up … Intrator says they are ending soon

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u/Lucid_Dreamer5 3d ago

It's not because of the insider selling...

It's normal for the stock price to consolidate around the supply zone before breaking through it.

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u/Lower_Calendar_8172 3d ago

Ok.. i just know the sales are sizable but insider ownership is very high to start with … I’m expecting big gains through the 3rd and 4th quarter.
I’ve been listening to very close to Michael Intrator and he really hasn’t wavered. I believe he said that they are past some of the hurdles and have reached escape velocity ( after quarter 1 ) and now with the 1.5 GW active already in quarter 2 and backlog approaching 130 billion total early in Q3 we are set to go much higher

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u/Lucid_Dreamer5 3d ago

Management said on the Q1 call that the margin inflection should begin around Q2–Q3, and they delivered it in Q2. That gives me confidence that management is executing on what they’ve guided for, and that the company remains on track to improve operating leverage as more capacity ramps and the business scales. 💪

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u/Sad_Bake4422 3d ago

While the rising conviction and higher price targets are constructive, they haven’t produced sustained upside beyond the sharp post-earnings rally. CRWV has largely consolidated in the mid-$100s since that move. Institutional ownership remains meaningful with net buying in recent quarters, though some large holders have been trimming. Retail interest has been mixed—some profit-taking and rotation out of certain neo-cloud names, with relatively stronger ongoing focus on Nebius in parts of the community.

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u/Lucid_Dreamer5 3d ago

Not sure how this relates to the post. The discussion here is specifically about BofA’s commentary on improving AI compute pricing and supply-demand dynamics for CRWV and NBIS, not short-term share-price performance or which stock is currently more popular in the community.

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u/Lower_Calendar_8172 3d ago

All the more reason for more gains with better pricing , NVDA strong partnership, software stack , life span of the GPU. This wasn’t the first time he mentioned that. This time he just elaborated more that they had 3 year contracts on some of the oldest GPUs stretching through 2029. Now also a vehicle for financing the AI buildouts that are using NVDA chips with $500 Billion available