CoreWeave (CRWV) shares climbed about 10% on Tuesday, making it a rare bright spot in a tech sector that was otherwise getting hammered. The Nasdaq fell 1.36% and the S&P 500 slipped 0.29%, but CoreWeave investors were busy celebrating two things: the company's upcoming addition to the Nasdaq-100 Index and a fresh vote of confidence from Cantor Fitzgerald.

Nasdaq announced that CoreWeave will join the Nasdaq-100 as part of its June quarterly rebalance, effective before the market opens on June 22. That's a big deal because index-tracking funds will have to buy shares to match the benchmark, creating a wave of demand that tends to push prices higher.

Cantor Fitzgerald, meanwhile, reiterated its Overweight rating and maintained its $167 price target on Tuesday. In a research note published Monday, the firm argued that CoreWeave's June bond offering memorandum contained financial details that equity investors have largely overlooked — and those details paint a picture of a company growing faster than the market realizes.

Cantor Sees Stronger Growth Than Investors Expect

The analysts pointed to a run-rate EBITDA of $18.76 billion, up from $16.10 billion disclosed in the company's April offering memorandum. That jump reflects additional contract wins and backlog growth during the quarter, signaling that the business momentum hasn't let up.

Sizable Backlog Beat Projected

Cantor Fitzgerald projects that CoreWeave is on track to blow past consensus backlog estimates for the second quarter of 2026. According to the firm's calculations, CoreWeave had accumulated an implied backlog of $125 billion as of the offering memorandum date, which covered about 80% of the quarter. If that pace holds for the rest of the period, total backlog could exceed $131 billion by the end of Q2. For context, Bloomberg consensus estimates sit at just $104.4 billion.

Favorable Valuation Metrics and Contract Targets

The report also notes that CoreWeave is on pace to secure roughly $40 billion in new contracts during the second quarter — similar to what it did in Q1. And the company has already locked in 90% of its year-end 2027 revenue target of $30 billion in annualized recurring revenue. That's a lot of visibility for a company that's still relatively young.

At Tuesday's share price of $106.71, CoreWeave traded at just 6.2 times enterprise value to run-rate EBITDA, using the target net debt of $58.3 billion from the offering memorandum. By most measures, that's cheap for a company growing this fast.

Broad Sector Undervaluing Persists

Cantor Fitzgerald didn't mince words about the broader market's view of CoreWeave and its neocloud peers. "While one of the biggest debates surrounding CRWV, as well as other neoclouds, is what valuation methodology or target multiple is most appropriate, we continue to believe the market is woefully undervaluing this sector and CRWV, in particular," the report said.

The analysts concluded that the current risk-to-reward ratio remains attractive for investors heading into the second-quarter earnings release. With the stock up nearly 10% on Tuesday to $117.09, the market seems to be starting to agree.