CoreWeave (CRWV) shares climbed 8.77% to $93.28 in Tuesday morning trading, buoyed by the company's entry into the Asia-Pacific market and a fresh Wall Street endorsement. The AI cloud infrastructure provider announced it will build three data centers in Indonesia, marking its first presence in the region.
The new facilities will deliver a combined 360 megawatts of contracted IT power, expanding CoreWeave's global footprint to meet rising AI demand across Southeast Asia. The company will own and operate all three sites and plans to hire local staff to support operations.
In a statement, CoreWeave highlighted the growing need for AI compute capacity close to customers' data and users, driven by latency-sensitive workloads and data residency requirements. The move extends a network that already includes 49 data centers worldwide as of March.
Adding to the positive sentiment, Piper Sandler initiated coverage with an Overweight rating and a $151 price target, naming CoreWeave a top pick in AI infrastructure. This follows a recent upgrade from Truist, which cited strong demand for AI computing, CoreWeave's specialized cloud platform, and an attractive valuation relative to peers.
The stock's rally also builds on momentum from the previous session, when major tech companies reported robust cloud and AI results. Microsoft, Amazon, Apple, and Meta all highlighted continued strength in these areas, reinforcing expectations for sustained demand for GPU-powered infrastructure.
Investors are now looking ahead to CoreWeave's second-quarter 2026 earnings, scheduled for August 11. Analysts project revenue of approximately $2.56 billion, more than double the $1.21 billion reported a year earlier.
CoreWeave has been aggressively expanding its infrastructure. In May, the company raised the lower end of its 2026 capital expenditure forecast to between $31 billion and $35 billion, citing higher component prices amid a memory chip shortage. It has also secured multi-billion-dollar agreements, including an expanded $21 billion cloud deal with Meta and a multi-year partnership with Anthropic.
While the stock has experienced volatility—recently highlighted in AI jitters and competition fears—the latest developments suggest confidence in its growth trajectory. The company's expansion into Asia and analyst endorsements underscore its positioning in the rapidly evolving AI cloud market.
This article is for informational purposes only and does not constitute financial advice.
