Morningstar analysts said CoreWeave Inc.’s close relationship with Nvidia Corp. makes it a go-to choice for customers, while downplaying concerns about Meta Platforms Inc.’s planned move into cloud computing. Morningstar has a fair value estimate of $106 on CoreWeave shares, implying an upside potential of about 31% from current levels. CoreWeave shares were up more than 13% in Monday’s opening trade. Morningstar argued that Meta’s reported plans to sell excess AI computing capacity reinforce the persistent supply-demand imbalance of AI infrastructure rather than signal a weakening market. The firm estimates U.S. cloud computing revenue will exceed $1 trillion before 2030, creating a long runway for both hyperscalers and specialized AI cloud providers. Morningstar said CoreWeave’s long-term growth will hinge less on winning new contracts than on delivering computing capacity on schedule, identifying land, power and equipment constraints as the biggest near-term risks. It agreed with management’s outlook that adjusted operating margin can reach 25%-30%, expecting this level in 8-10 years if revenue scales rapidly. However, Morningstar cautioned that neocloud providers like CoreWeave lack durable competitive advantages, as raw AI computing power has become increasingly commoditized, which could weigh on long-term returns. According to a Bloomberg report last month, Meta is developing plans for a cloud infrastructure business to sell excess AI compute capacity to outside customers.