This article first appeared on GuruFocus.

CoreWeave (NASDAQ:CRWV) shares rose in premarket trading Thursday after JPMorgan (NYSE:JPM) upgraded the AI infrastructure provider to Overweight from Neutral, arguing that strong demand and more favorable contract pricing could drive revenue and margins higher than previously expected. The upgrade puts renewed focus on CoreWeave’s ability to monetize scarce GPU capacity more aggressively, even as investors remain wary of the company’s heavy capital requirements.

CoreWeave operates specialized cloud infrastructure built around high-performance GPUs used for AI training and inference. Its growth depends heavily on securing enough capacity, financing data-center…