CoreWeave Inc (NASDAQ: CRWV) soared nearly 20% on Dec. 19 after announcing participation in the US government’s “Genesis” mission.
The Department of Energy (DOE) programme is designed to accelerate scientific discovery, strengthen national security, and advance energy innovation.
CoreWeave stock is also pushing higher because Citi analysts issued a bullish note in favour of the artificial intelligence (AI) infrastructure firm on Friday morning.
Significance of the DOE mission for CoreWeave stock
CoreWeave’s inclusion in the DOE’s Genesis mission is a significant validation of its AI-focused cloud infrastructure.
It places the Nasdaq-listed firm at the centre of government backed efforts to harness AI for energy and defence applications.
Earlier this year, the Livingston-headquartered firm launched CoreWeave Federal, a unit dedicated to serving federal agencies, and the Genesis Mission further cements its credibility in that space.
By aligning with the DOE, it gains access to high profile projects expected to drive demand for its computing capacity while enhancing its reputation as a trusted partner in national security.
For investors, this partnership signals long term growth potential and bolsters the case for CRWV stock as a key player in AI infrastructure.
What to expect from CRWV shares in 2026
CoreWeave shares have been in a sharp downtrend in the back half of 2025 – but the coming year will likely be a whole other story, according to Citi analysts.
On Friday, the investment firm resumed coverage of the AI infrastructure firm with a “buy” rating.
Its $135 price target indicates potential upside of 70% from here.
Citi added a high-risk designation, citing limited trading history and heavy customer concentration, yet emphasised that demand for CRWV’s active data centres (41 in total) remains overwhelming.
“The demand is so overwhelming that the company frequently turns away customers,” wrote Tyler Radke, its senior analyst, pointing to some $50 billion in potential spending from Microsoft that went to other providers due to CoreWeave’s capacity constraints
Citi expects CoreWeave to swing to profitability sooner than consensus, forecasting $384 million in net income for fiscal 2026 on the back of explosive revenue growth.
Despite capital spending concerns, the firm sees hypergrowth as a deliberate strategy to capture market share.
CoreWeave: a rebound with momentum
CRWV shares’ rally on DOE news and Citi’s constructive note highlights how quickly sentiment can shift for high-growth tech stocks.
While risks remain – including heavy capital requirements and debt obligations – the company’s positioning in AI infrastructure and government partnerships offers a compelling growth narrative.
For shareholders battered by the stock’s steep decline since June, Friday’s surge provides evidence that CoreWeave may be turning a corner.
If Citi’s forecasts prove accurate, 2026 could be the year this AI stock transitions from hypergrowth to profitability, potentially rewarding investors who weathered the volatility.
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