UBS cuts CoreWeave price target to $105, warning that market confidence in its financing capacity may take several quarters to recover.

UBS cut its price target on CoreWeave to $105 from $120 while maintaining a "Buy" rating, citing growing concerns over persistently rising financing risks for AI infrastructure companies and the difficulty of restoring investor confidence in the near term. CoreWeave shares have fallen 37% cumulatively since October, while Microsoft and Amazon shares rose over the same period. UBS believes this reflects investors shifting toward large technology companies with stronger financial positions to reduce AI infrastructure investment risk. The firm said it is reassessing CoreWeave's credit profile and expects it may take several quarters to rebuild market confidence. CoreWeave currently has about $129 billion in remaining performance obligations, but to meet contracted demand it is expected to need roughly $20 billion in additional financing. Meanwhile, the company's credit default swap costs have risen to historic highs, reflecting heightened market concerns over its debt risk.