Shares of CoreWeave Inc ( CRWV ) rose sharply during Monday's pre-market session.

The move follows a massive sector catalyst involving Meta Platforms Inc ( META ) .

Meta's $27 Billion AI Commitment

Investor sentiment turned bullish after Nebius Group NV ( NBIS ) announced a long-term agreement with Meta. The deal has a total contract value of up to $27 billion. Nebius ( NBIS ) will supply dedicated AI compute capacity using the NVIDIA Corp ( NVDA ) Vera Rubin platform.

This milestone deal created positive spillover for other AI infrastructure providers. Both CoreWeave ( CRWV ) and IREN ( IREN ) saw gains as traders bet on increasing demand for specialized AI cloud services.

Short Interest Hits 19.76%

The rally comes amid rising short interest for CoreWeave ( CRWV ). According to Benzinga, short interest increased from 50.71 million to 53.13 million shares. This represents 19.76% of the company's float.

With an average daily volume of 25.85 million shares, the “days to cover” ratio stands at 2.06. High short interest can lead to rapid price spikes if short sellers rush to cover positions simultaneously.

Strong Track Record of Earnings Beats

CoreWeave ( CRWV ) is scheduled to report first quarter earnings on May 13. Analysts currently estimate an loss per share of $1.19 on revenue of $1.96 billion. The company has a history of outperforming expectations.

In fourth quarter, CoreWeave ( CRWV ) reported an loss per share of $0.56. This beat the estimate loss of $0.65.

Analysts See Double-Digit Upside

Wall Street remains largely optimistic about the AI provider. The consensus price forecast sits at $122.09 based on 37 analyst ratings.

Recent ratings from Evercore ISI Group, Oppenheimer, and Bernstein suggest significant growth ahead. Their average target of $105.33 implies a 22.01% upside from recent levels.

Price Action: CoreWeave ( CRWV ) shares were up 6.32% at $86.24 in Monday’s pre-market session. The stock has gained 102.77% over the past year, according to Benzinga Pro data.