While numerous analysts might envision a more optimistic outlook for CoreWeave, there remains a contingent that is not entirely confident following the financial results for the fourth quarter from the artificial intelligence-focused cloud infrastructure provider. CoreWeave experienced a decline of 20% on Friday following its first-quarter guidance, which did not meet market expectations. “In our view, the stock reaction is a function of near-term margin pressure driven by the timing of capacity ramps,” stated analyst Gabriela Borges. The $86 price target suggests a potential decline of approximately 12% from Thursday’s closing price.

Analyst Keith Weiss has maintained a neutral stance with an equal-weight rating. “Bottom line, if investors can gain confidence in the durable margin profile of CoreWeave being in line with management’s mid-20′s target, the stock currently well underprices the potential free cash flow associated with a ramp to over $80 billion in annual recurring revenue over the next 5 years,” he wrote in a note Friday.

Nonetheless, he is “awaiting more clarity on the unit economics of this rapidly scaling GPUaaS business and the potential for software (including the recent partnership with Nvidia) to tilt the margin equation more positively.” Analyst Michael Turrin holds an overweight rating on the stock. His price target of $125 indicates a potential upside of 28% from Thursday’s closing price. “While the future state of AI remains uncertain, we believe CRWV is positioned to benefit in the near term as the leading ‘pick-and-shovel’ infrastructure play, while demand continues to outpace supply,” he stated in a note Thursday.