CoreWeave Stock Faces Fresh Pressure as Higher Rates Threaten AI Boom Summary
UBS lowered its CoreWeave price target to $105 from $120 but maintained its Buy rating, pointing to financing risks and weakening sentiment across AI stocks
CoreWeave CRWV shares dropped 2% in Friday morning trading as UBS cut its price target on the AI computing company to $105 from $120, while keeping its Buy recommendation.
The revised target reflects concerns about financing conditions and investor sentiment rather than a newly identified weakness in the company's operations. UBS analyst Karl Keirstead said demand trends, GPU pricing and CoreWeave's expansion into additional services remain supportive of its business outlook.
CoreWeave faces particular pressure when markets become less receptive to companies that need large amounts of capital. Building AI data centers requires substantial spending, while the company's negative free cash flow and reliance on debt make its valuation more sensitive to higher interest rates.
The stock's decline also comes amid broader uncertainty over how much companies will continue spending on artificial intelligence infrastructure. UBS views that wider reassessment as a key factor weighing on heavily funded AI businesses, rather than evidence that CoreWeave's own business prospects have suddenly weakened.
Although the bank retained its positive rating, the lower price target signals a more cautious view of the stock's near-term potential. Keirstead indicated that a recovery in investor confidence could take time as markets reassess AI investment and financing risks.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Neocloud company CoreWeave is facing a crisis of confidence on Wall Street that's playing out in real time among equity and bond investors. With interest rates spiking and AI build-out concerns mounting, debt-heavy neoclouds like CoreWeave are being viewed by many market participants as the most vulnerable trade in the artificial intelligence space.
CoreWeave has $104 billion in contracted revenue, a 25% price increase already in effect, and Wall Street calling for triple-digit upside. One number buried in the financials threatens to unravel all of it.
CoreWeave (NASDAQ:CRWV) has a simple pitch. It leases purpose-built GPU capacity to AI labs and enterprises, and its CEO says the company sits “between the models and the silicon, delivering the infrastructure, software, and expertise required to build and run AI at scale.”
Demand backs up that claim, but the stock has not. Shares are down 13.24% year-to-date, down 51.1% over the past year, and off 20.15% in the last week alone. From $62.19, a run to $100 in 2027 would take a 61% gain. Here’s what would have to go right.
Wall Street Sees Even More Upside Than $100
Analysts’ average price target is $138.34, which implies 122% upside. 31 analysts rate the stock a buy or strong buy, while 3 rate it a sell or strong sell. That optimism rests on revenue.
Estimates call for $12.87 billion in 2026 and $26.34 billion in 2027, roughly 105% growth. CoreWeave has topped revenue estimates in five straight quarters, and in Q2 it posted its first EPS beat: -$1.14 against an estimate of -$1.447.
Here’s What It Takes for CoreWeave to Reach $100
CoreWeave is still losing money, so price-to-sales is the right benchmark. Its market cap now equals about 1.1x 2027 revenue estimates. At $100, that would rise to roughly 1.7x, which is modest for a company doubling its sales. The catch is debt: enterprise value runs 12.38x trailing revenue.
A few factors could drive CoreWeave to $100.
Backlog: Contracted revenue stands at $104.2 billion, and more than $25 billion in new commitments signed early in Q3 isn’t counted yet.
Pricing power: A July price increase of about 25% went into effect, and management says “our near-term capacity remains effectively sold out.”
Operating leverage: Operating cash flow reached $679 million, and management expects adjusted operating margins in the “low teens” in Q4.
Inference: Managed inference ARR passed $100 million, and the company is aiming for at least $250 million by year-end.
Power and index flows: CoreWeave plans to grow from 1.5 gigawatts of active power to 8 gigawatts by 2030, and its addition to the Nasdaq-100 could bring in index-fund buying.
Financing Is the One Risk That Could Change Everything
All of this growth runs on borrowed money. Interest expense rose to $640 million from $267 million a year earlier, and Q3 guidance calls for $860 million to $940 million. Capex guidance for 2026 is $35 billion to $39 billion, and debt-to-equity is 8.94.
If credit markets tighten, the bull case breaks down. There is some relief: CoreWeave has cut its average cost of debt by almost 300 basis points, which it says saves about $1.1 billion a year in interest.
CoreWeave’s Short History Shows $100 Is Within Reach
CoreWeave went public at $40 and closed 2025 at $71.61, a 79% gain in its first partial year.
Its 52-week high is $141.79, and shares traded at $136.80 around its Q1 report in May. The stock has already traded well above $100 this year.
$100 Is a Stretch, but the Path Is Clear
Reaching $100 would take a 61% gain, which is still below where Wall Street’s consensus target sits. That would require backlog turning into revenue, pricing holding firm, margins expanding as promised, and lenders continuing to fund the expansion.
In the near term, Q3 interest costs and progress on power installations are the numbers to track. Gains of that magnitude won’t happen every year, but this is the model for how CoreWeave could see outsized returns in 2027.
Contact [email protected] for any questions or corrections.
CoreWeave Inc. (NASDAQ:CRWV) shares are breaking to a new 52-week low Friday, its second fresh low in days, as higher rates keep weighing on the stock.
CoreWeave stock is testing key support levels. Why is CRWV stock at lows? At roughly $54.28, CoreWeave trades below the $57.24 low it set earlier this week and about 62% beneath its 52-week high of $141.79. Today’s 1.43% decline adds to a long slide: around 10.72% over five days, 36.93% over a month and 53.32% over six months.
Morgan Stanley and UBS Cut CoreWeave TargetsMorgan Stanley analyst Keith Weiss stayed at Equalweight and reduced the price target to $70 from $99. Weiss credits CoreWeave with solid execution and calls it the “speed and scale leader” among crowded neocloud rivals. Still, financing uncertainty is obscuring how the company will deploy its contracted capacity and eventually reach 8 gigawatts of active capacity.
More news today includes UBS analyst Karl Keirstead, who held Buy and trimmed the price target to $105 from $120. Keirstead noted that CoreWeave has lost 37% in October as neocloud AI infrastructure stocks, Oracle among them, saw confidence erode.
Microsoft and Amazon moved higher instead, a split Keirstead takes as a defensive turn on AI infrastructure, and one UBS broadly shares. The note revisits CoreWeave’s credit story and warns that rebuilding confidence could be a “multi-quarter fix.”
Rising Rates Pressure Debt-Heavy CoreWeaveHigher interest rates are weighing on companies that carry heavy debt, alongside unease over AI spending, and CoreWeave is among them. Rates and AI spending worries have driven this week’s selling.
CNBC reported Wednesday that holders of CoreWeave stock and bonds are both losing confidence as rates climb and AI build-out doubts grow. Investors increasingly view debt-laden neocloud providers, CoreWeave among them, as the most vulnerable corner of AI.
CRWV Shares Are FallingCRWV Price Action: CoreWeave shares were down 1.13% at $54.97 at the time of publication on Friday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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CoreWeave's (CRWV -0.77%) stock has plunged 54% over the past 12 months, and it set a new 52-week low of $53.50 on Oct. 22. In the past week alone, it sank about 13%. Let's see why this neocloud stock fizzled out -- and if it's becoming a compelling buy at these prices.
What does CoreWeave do?
CoreWeave was once an Ethereum miner, but it repurposed its Nvidia (NVDA +0.24%) GPUs to train AI models after the cryptocurrency market crashed in 2018.
Image source: Getty Images.
Today, CoreWeave operates 51 data centers that run over a quarter million Nvidia GPUs to remotely process AI tasks. That streamlined approach enables it to process advanced AI workloads roughly 35 times faster and at 80% lower cost than larger cloud platforms. Its largest customers include Meta Platforms, Microsoft, OpenAI, and Anthropic. Nvidia also owns about 9% of CoreWeave, making it the company's top institutional investor.
CoreWeave went public last March. In 2025, its revenue soared 168% to $5.1 billion, and its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 154% to $3.1 billion. Those explosive growth rates -- driven by the AI market's breakneck expansion -- dazzled investors, and the stock surged from its IPO price of $40 per share to a record high of $183.58 per share on June 20, 2025.
CRWV CoreWeave$55.17-$0.43 (-0.77%)
NASDAQ · As of 12:04 PM ET 10/23/26
Why did CoreWeave's stock crash?
At its peak, CoreWeave's enterprise value hit $91.1 billion -- or 18 times the revenue it would generate in 2025. However, it struggled to maintain that premium valuation because investors were concerned about its steep losses and persistent dilution.
Even though its adjusted EBITDA was positive, it posted a net loss of $1.2 billion in 2025. That massive gap was driven by interest payments, equipment depreciation, lease and acquisition costs, and stock-based compensation, all of which were excluded from its adjusted EBITDA.
To stabilize its liquidity, CoreWeave issued more shares and convertible debt. That's why its share count has risen 28% since its IPO, and why it ended its latest quarter with $72 billion in total liabilities and a jaw-dropping debt-to-equity ratio of 14.3. Those glaring weaknesses suggested its business model wasn't sustainable yet, and the Fed's rate hike in September -- its first in three years -- made its messy balance sheet even less attractive.
How fast is CoreWeave growing?
By the end of the second quarter of 2026, CoreWeave's contracted revenue backlog had grown 246% year over year to $104 billion. For the full year, analysts expect its revenue and adjusted EBITDA to surge 151% to $12.9 billion, with adjusted EBITDA growing 144% to $7.6 billion. But on a GAAP basis, they expect its net loss to widen from $1.2 billion to $2.9 billion.
While CoreWeave's business is booming, it had only 1.85 GW of capacity at the end of June, compared to a contracted backlog of 4.2 GW. It expects to lease more data centers and buy more GPUs to narrow that gap next year, but that expansion will be costly.
For 2027, analysts expect its revenue to grow 106% to $26.5 billion, its adjusted EBITDA to grow 121% to $16.7 billion, and its net loss to narrow slightly to $2.8 billion. At its current enterprise value of $76.2 billion, it trades at just four times next year's sales and six times its adjusted EBITDA. Those low valuations should limit its downside potential, even if near-term concerns about rising rates and steep net losses weigh on its stock.
Why could it be the right time to buy CoreWeave?
CoreWeave clearly has a first-mover advantage in the neocloud space; it's firmly backed by Nvidia, and economies of scale should kick in as its business matures. I didn't love the stock when it skyrocketed after its IPO, but I think it's worth accumulating in the mid-50s -- as long as you can tune out the near-term noise and focus on its long-term growth potential.
Matthew Tuttle discusses the greater AI trade and the headwinds he sees hitting tech as the sector undergoes a correction. As Matt says, "at some point, you've got to start showing profit," noting the lingering debt concerns Wall Street has in companies like CoreWeave (CRWV).
CoreWeave sits on a backlog that rivals the GDP of a small nation, yet shares just cratered to near their 52-week low. Whether that gap represents the buying opportunity of the AI buildout or a debt trap closing in depends…
CoreWeave (NASDAQ:CRWV) trades at $62.19. Our 24/7 Wall St. price target is $85.06 over the next 12 months, which means 36.77% upside. Our model rates the stock a buy with moderate confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $62.19 Price Target from 24/7 Wall St. $85.06 Upside/Downside 36.77% Recommendation BUY Confidence Level Moderate The $100 billion opportunity is CoreWeave’s revenue backlog, which reached $104.2 billion at the end of Q2. That figure excludes the over $25 billion in net new commitments signed early in Q3.
The big question for investors is whether CoreWeave can turn that backlog into profit before its interest bill exceeds it.
A Sharp October Selloff Puts Shares Near the 52-Week Low The stock fell 20.07% in the past week and 23.56% over the past month, leaving it down 13.15% year to date. Shares sit 56% below the $141.79 52-week high and just 8.67% above the $57.23 low.
Barron’s listed CoreWeave among the stocks that explained Tuesday’s market, and the Wall Street Journal reports that stock pickers burned by the AI boom think their moment has arrived.
Fundamentals moved the other way: Q2 revenue rose 112.3% to $2.575 billion, beating the $2.555 billion consensus. GAAP EPS of -$1.14 beat the -$1.447 estimate, with help from $125 million in net other income.
Why Bulls See $138 and Beyond More than 50% of the backlog is already in customer delivery. Management expects more than two-thirds to be online by year-end. In July, CoreWeave raised prices about 25% across SKUs, and it expects adjusted operating margins to reach the low teens in Q4.
Booked ARR for managed inference rose from $1 million to more than $100 million. Management guides to a year-end annualized revenue run rate of $18.5 billion to $19.5 billion.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) also closed a $2B equity investment. Among analysts, 31 rate the stock a Buy or Strong Buy. Their $138.34 consensus target is our bull case.
What Could Break the Thesis Free cash flow was -$5.743 billion in Q2, and 2026 capex guidance runs $35 billion to $39 billion. Total liabilities stand at $72.05 billion. A few customers make up much of the backlog, including a $21B commitment from Meta Platforms (NASDAQ:META).
A securities class action also claims CoreWeave hid data center delays. If the market cut the multiple to 1.5x 2026 sales, our bear case would be $41.84.
Still, operating cash flow turned to +$679M from -$251M, and adjusted EBITDA hit a 59% margin. The CFO noted that online clusters become “predictable and highly cash flow generative.”
Is CoreWeave Cheaper Than Nebius and Oracle? Company Price/Sales (TTM) Quarterly Revenue Growth YoY CoreWeave 3.8x 112.5% Nebius 34.15x 454% Oracle 5.47x 29.6% Nebius Group (NASDAQ:NBIS) is the closest pure-play GPU cloud peer. Nebius carries a 46x forward P/E, while CoreWeave’s sales multiple is a fraction of Nebius’s.
Oracle (NYSE:ORCL) is building GPU capacity at hyperscale. Its 35.6% operating margin earns a higher sales multiple even though it grows far more slowly. Next to both peers, the 24/7 Wall St. price target looks conservative.
Our Model Says the Selloff Went Too Far My 24/7 Wall St. price target is $85.06, with a buy rating and moderate confidence. What tips the scale is revenue visibility that few growth stocks can match.
The thesis improves if margins expand as promised in Q3 and Q4. It weakens if interest costs exceed adjusted operating income. At this price, the backlog looks undervalued.
Year Price Target from 24/7 Wall St. 2026 $73.63 2027 $85.06 2028 $103.77 2029 $122.45 2030 $140.82 CoreWeave needs to stay on track for at least 8 gigawatts by 2030 for these projections to hold.
A faster margin ramp could lift results, while tighter credit markets could drag them lower. CoreWeave is one of several non-chip names riding the data-center expansion, and we covered seven more of them, from power to cooling, in a free AI infrastructure report.
Contact [email protected] for any questions or corrections.
CoreWeave (CRWV -10.06%), a specialized AI cloud infrastructure and GPU hosting provider, closed at $55.60, down 10.06%. Bernstein cut its target even as Nvidia CEO Jensen Huang said demand for neoclouds is "off the charts."
Trading volume reached 79.7 million shares, coming in about 122% above its three-month average of 35.9 million shares. CoreWeave IPO'd in 2025 and has grown 39% since going public.
How the markets moved todayThe S&P 500 (^GSPC -1.21%) fell 1.22% to 7,663, while the Nasdaq Composite (^IXIC -2.60%) dropped 2.60% to 26,009. Among AI infrastructure and so-called neocloud companies, industry peers also weakened. Nebius Group closed at $159.17, down 7.23%, and Iren closed at $25.51, down 8.37%.
What this means for investorsOn Thursday, CoreWeave hit a new 52-week low as investors focused on higher interest rates and financing pressure. Debt costs are keeping the focus on neocloud companies that borrowed heavily to supply data center compute capacity.
Bernstein analyst Madison Rezaei cut her price target to $51 from $74 per share on CoreWeave, keeping an "Underperform" rating. The move was based on financing concerns, with the firm estimating that CoreWeave needs about $85 billion to fund its committed backlog.
At the same time, Jensen Huang and Blackstone chief operating officer Jon Gray both commented on the strength of demand for compute capacity. Gray specifically complimented CoreWeave's management. In an interview with CNBC, he stated, "Some of these companies have very talented CEOs. CoreWeave is a good example of this. They'll find a way through it, but that's the challenge they face. The underlying business is actually quite strong."
Fear in the sector appears to be presenting investors with good opportunities in companies positioned to manage their investments and financing.
Howard Smith has positions in Blackstone, Iren, and Nvidia. The Motley Fool has positions in and recommends Blackstone and Nvidia. The Motley Fool has a disclosure policy.
Markets are flashing extreme fear, but Wall Street veterans say investors are watching the wrong thing. The real threat to your finances may be hiding in a corner of the market most people ignore until it's too late.
CNN’s Fear & Greed Index rose to 31 on Wednesday, deep in “Extreme Fear” territory. A week ago, it read 30. The increase follows a hot inflation report, new attacks in the Middle East, and a selloff in chipmakers as AI debt fears intensify, with CoreWeave (NASDAQ:CRWV) under scrutiny over CoreWeave’s debt. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has slipped 1.22% over the past week.
Investors have reason to be nervous. The danger for regular Americans, though, sits in the bond market more than in the AI stocks grabbing headlines.
Fear Gauge Signals Flash Red, With Gaps
The index combines several equally weighted market signals, and most are flashing warnings. The S&P 500 trades below its 125-day moving average. The NYSE is posting more 52-week lows than highs. Safe-haven demand shows extreme fear as money moves into bonds, and junk bond spreads also read fear. Traders are buying protection, too: the SPY put/call ratio stands at 1.18, meaning puts outnumber calls.
The volatility index tells a calmer story. The VIX closed is at 18.52 today, inside its normal 15 to 20 range but below its one-year average of 18.02. In March, it hit 31.05. The Fear & Greed reading itself was 35 a month ago and 26 a year ago, so today’s level is familiar ground. Stocks remain up 11.8% year to date.
Shoppers Keep Spending While Yields Climb
Consumers say they feel bad. The University of Michigan sentiment index stood at 51.7 in August, below the 60 level associated with recessions. Their wallets disagree. Retail sales reached $745.0 billion in September, up 0.8% from August and the highest reading of the past year. The yield curve also remains positive, with the 10-year yield 0.37% above the 2-year, so it is not signaling a recession either.
The real pressure point is the 10-year Treasury yield, which stood at 5.21% on October 13. A year ago it was 4.05%, and it touched 5.31% on October 5. Barron’s put it bluntly: “The AI Selloff Is Bad but the Bond Market’s Reaction Is Worse.” That yield sets the floor for mortgage rates and corporate borrowing costs. It also explains the AI rout. Companies borrowing heavily to build data centers look riskier when debt costs rise, and higher discount rates reduce what future profits are worth today.
For households, that means a hot inflation report matters more than a bad week for chip stocks. Sticky inflation keeps long rates high, which pressures home buyers and anyone carrying variable-rate debt.
Signals to Track Before You React
Three markers will show whether this scare becomes something bigger. First, a 10-year yield above 5.31% would set a new one-year high and likely push mortgage rates up with it. Second, a VIX close above 20 would move volatility into the higher range, confirming the fear the index already shows. Third, October retail sales will show whether gloomy consumers finally cut back, since sentiment tends to lead spending by one to three months.
Long-term investors have weathered readings like this before. SPY is up 256.66% over 10 years. The better use of this moment is reviewing how much your portfolio and borrowing depend on rates staying high (see our free handbook on riding out, and eventually leaving, market manias like the current AI run: The Bubble Survivor’s Handbook).
Contact [email protected] for any questions or corrections.
CoreWeave (CRWV) faces renewed scrutiny after Bernstein analyst Madison Rezaei cut her price target to $51 from $74, retaining an Underperform rating on the AI
Bank of America sees major upside in both CoreWeave
CRWV -11.06% 8
and Nebius
NBIS -8.55% 52
ahead of their third-quarter earnings reports, but the firm is more bullish on CoreWeave despite the company's massive capital needs.
Analyst Tal Liani rates both stocks Buy, with a $140 price target on CoreWeave, implying roughly 126.5% upside, and a $310 target on Nebius, implying about 80.6% upside from current levels.
The setup for CoreWeave is aggressive.
BofA expects the company to add another 200 megawatts of capacity in Q3, taking total active power to about 1.7 gigawatts. The firm forecasts quarterly revenue of $3.66 billion, up roughly 168% year over year.
Demand does not appear to be the problem.
CoreWeave entered the quarter with about $129 billion in remaining performance obligations, giving it enormous contracted demand visibility.
The bigger issue is whether it can finance enough infrastructure to serve that backlog.
BofA estimates CoreWeave may need another $20 billion in funding and expects Q3 capital spending of roughly $12.5 billion, up 558% from a year earlier. Over the next three years, the firm expects CoreWeave to add around 1.4 to 1.5 gigawatts of capacity annually.
Nebius faces a similar capacity race.
BofA expects it to exit Q3 with around 675 megawatts of connected power and 525 megawatts active, up sharply from 170 megawatts of active power at the start of 2026.
The firm forecasts $906 million in Q3 revenue, representing roughly 520% year-over-year growth.
Nebius also raised $5 billion through a convertible offering during the quarter. BofA believes current commitments should cover its funding requirements through year-end 2026, but estimates the company may need another $18 billion in 2027 as it adds roughly one gigawatt of additional capacity.
Investor takeawayI think this is becoming less of a demand story and more of a financing and execution story.
Both CoreWeave and Nebius are seeing extraordinary AI infrastructure demand.
The real question is whether they can build capacity fast enough, and cheaply enough, to convert that demand into revenue without overwhelming their balance sheets.
CoreWeave arguably has the stronger visibility because of its $129 billion backlog, which helps explain why BofA sees more upside there.
But that opportunity comes with more obvious funding pressure.
Nebius may have a slightly cleaner near-term financing position, yet its growth thesis still depends on bringing new capacity online on schedule.
For investors, the key things to watch are capacity additions, capex, financing costs, backlog conversion and whether either company has to raise substantially more capital than expected.
BofA likes both stocks.
But its numbers suggest CoreWeave remains the higher-risk, higher-upside bet.
It has been a bad time to be a Nebius (NBIS -7.23%) or CoreWeave (CRWV -10.06%) shareholder. For the week of Oct. 12 to Oct. 16, each stock crashed 25%. That's no small drop, and investors in these two are likely concerned.
But should they be? Or is it time to buy the dip? Let's take a look.
Image source: Getty Images.
CoreWeave caused the sell-off The sell-off can be directly correlated to the yield on CoreWeave's debt on the secondary market exploding to 15%. That's a big deal, because the current risk-free yield on Treasuries hovers around 5%, so this debt is now classified as "distressed," which is worse than "junk."
CRWV CoreWeave$55.60-$6.22 (-10.06%)
NASDAQ · As of 4:00 PM ET 10/22/26
This is basically the market telling investors that it does not believe that CoreWeave will be able to meet its debt obligations. As a result, its stock has sold off. Nebius is in the same industry, so its stock sold off in solidarity.
Both companies operate in the neocloud computing space, which deals in what is essentially cloud computing with a focus on artificial intelligence (AI). Neither CoreWeave nor Nebius has a core business to fund its massive data centers, so they must issue shares or take on debt to build out the data centers they need to compete with the AI hyperscalers. These two are growing incredibly fast, but they are using debt to do so.
CRWV Revenue (Quarterly YoY Growth) data by YCharts
The big concern here isn't what happens to the debt now; it's what will happen when debt needs to be issued later. Both companies will have to issue debt again to maintain their growth rates, and if the yields on the bonds are sky-high when they are issued, it may not be worth it. This could be a huge problem for these companies, and we'll have to see if it persists.
So is it time to buy the dip on these two? I'm not sure. While I believe in the strength of the AI build-out and that CoreWeave and Nebius are two growing companies that could make a name for themselves, what's going on now in the bond market could be a problem for future debt issuance. The core investment thesis is that they will have access to nearly unlimited cheap capital to build out cloud infrastructure. What happened in the past week has challenged this notion.
I currently own shares of Nebius, but not CoreWeave. I don't plan on adding any more shares at the moment, but I'm also not selling. Sometimes best to let the dust settle before taking action.
Keithen Drury has positions in Nebius Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
CoreWeave is expected to deliver another quarter of rapid growth as new data centre capacity comes online, with Bank of America forecasting a 168% year-over-year jump in third-quarter revenue.
The bank reiterated its Buy rating and US$140 price target on the AI cloud infrastructure provider ahead of its third-quarter 2026 results, expected in early November.
Analysts expect CoreWeave to bring an additional 200 megawatts of capacity online during the quarter, following the deployment of 500MW in the second quarter. That would lift its total active power capacity to 1.7 gigawatts.
Bank of America forecasts third-quarter revenue of US$3.66 billion and an operating margin of 6.7%. The analysts said the contribution from recently deployed infrastructure, combined with growing revenue scale, could create scope for margins to exceed expectations.
Looking further ahead, the bank expects CoreWeave to add between 1.4GW and 1.5GW of capacity annually over the next three years. It forecasts revenue growth of 152% in fiscal 2026, 105% in 2027 and 63% in 2028.
Funding remains a key question
CoreWeave's remaining performance obligations (RPO), which represent contracted revenue yet to be recognized, stood at about US$129 billion as of early third-quarter 2026.
Bank of America said the backlog highlights the scale of demand supporting the company's growth outlook, but financing the infrastructure needed to fulfil those commitments remains a key consideration.
The bank estimates CoreWeave will require about US$20 billion in additional funding to meet its RPO commitments.
Analysts will be looking for more detail on the earnings call about the company's financing plans and borrowing costs, particularly following a recent widening in credit spreads.
Capital expenditure is another area to watch. Bank of America forecasts third-quarter capex of US$12.5 billion, up 558% from a year earlier.
Ahead of the results, the bank is focused on four key areas: how quickly new infrastructure translates into revenue, the potential for operating margin upside, the cost and availability of funding, and the outlook for capital spending.
CoreWeave stock hit a 52-week low on Thursday at $56.13, a decline of 9.2% on the day.
SummaryCoreWeave and Nebius face divergent credit risks despite similar market reactions; the distinction lies in debt structure, cost, and maturity profiles.CoreWeave's heavy, high-cost debt and near-term maturities create acute refinancing risk, with credit default swaps implying significant default probability.Nebius benefits from low-cost, longer-term convertible debt but faces ongoing dilution as shareholders' stakes shrink with each capital raise.Key signals for both include credit spreads, capex guidance, and conversion of backlog to cash; upcoming earnings will be pivotal for both companies' outlooks.Editor's note: Seeking Alpha is proud to welcome Nicholas Thomas Lowry as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Buy CRWV. The news is fundamentally bullish: Jensen Huang says neocloud demand is “off the charts,” and CoreWeave’s backlog jumped to $104B with revenue up to $2.57B. The stock is down 67% from its peak and is oversold (RSI ~30), so you’re buying a high-quality AI infrastructure winner at a panic price while demand is still accelerating.
Key Risk: Capital stays scarce and CoreWeave can’t refinance expensive debt, forcing dilutive equity issuance or asset write-downs.
AI data-center credit (HYG/IG credit risk)
Sell high-yield credit exposure to AI data-center issuers via HYG (or short IG credit via LQD). The article flags 15% long-term bond yields and rising debt, plus Gartner’s warning that neoclouds are exposed to the gap between massive capex and slower monetization. If financing costs keep rising, credit spreads widen first, hitting leveraged balance sheets before equity fully reprices.
Key Risk: AI infrastructure monetization accelerates faster than expected, letting issuers refinance at lower spreads and compressing credit risk.
CoreWeave’s stock extended its sharp downward trend, while its bond yields surged this week as investors remained concerned about the neocloud industry. CRWV fell to $57, its lowest level since May 9 last year. The stock has slumped more than 67% from its peak this year, wiping out billions of dollars in market value. So, is this retreat a good buying opportunity?
CoreWeave, a former Bitcoin mining company that has successfully pivoted towards the artificial intelligence industry, is doing well. It has become the biggest company in the neocloud industry, clinching deals with the biggest companies in the space like Anthropic, OpenAI, and Jane Street.
The company is benefiting from the ongoing demand for computing power, which analysts believe has more room to go. In a statement today, Jensen Huang, Nvidia’s CEO, said that demand for neoclouds was off the charts, with capital being the only challenge. He said:
“If you look at the fundamentals, the demand for the neo clouds is off the charts. What is missing in the middle is the working capital to fuel that growth because there’s just so much demand across so many sectors of AI, capital is scarce.”
Just this week, the WSJ noted that Anthropic’s S1 document showed that its future infrastructure costs will top $600 billion. It is now negotiating additional computing deals that could see commitments rise by as much as $150 billion. In this case, it may negotiate with CoreWeave.
The recent results showed that the company’s revenue backlog jumped to $104 billion at the end of the June quarter. This surge made it the biggest company in the neocloud industry. It is also fueling its strong revenue growth, with the quarterly figure rising to $2.57 billion from $1.2 billion in the same period last year.
Wall Street analysts believe that CoreWeave has more room for growth, with the annual revenue expected to hit $12.87 billion, followed by $26.35 billion next year. If this trend continues, chances are that the company’s annual revenue will hit $50 billion in the foreseeable future.
The challenge, however, is that the company’s financing costs are elevated. Its bond yields have continued to rise, with some long-term ones yielding 15%. Also, its total debt has jumped to nearly $30 billion.
Also, some analysts believe that the company will need to announce huge impairments in the coming years. In a report released last week, Gartner said that AI data center owners will need to make a cumulative $8.5 trillion in revenue to cover the rising capital spending. It expects the total revenue to be no more than $3.6 trillion. The report added:
“Neoclouds will be among the most exposed to the imbalance between revenue and capital spending. Neoclouds must soon earn returns on AI-optimized IaaS and associated platforms to sustain operations.”
CRWV stock chart | Source: TradingView
The daily chart shows that the CRWV stock has been in a strong sell-off this month and is now at the lowest level in months. The risk is that it has formed a head-and-shoulders pattern, which is a common bearish sign.
CoreWeave remains below all moving averages, while the Relative Strength Index (RSI) has moved to the oversold level of 30. The combination of the H&S pattern and the moving averages suggests that the stock will continue falling in the near term. If this happens, it will drop to $35.
CoreWeave is facing a crisis of confidence on Wall Street that's playing out in real time among equity and bond investors.
With interest rates spiking and AI buildout concerns mounting, debt-heavy neoclouds like CoreWeave are being viewed by many market participants as the most vulnerable trade in the artificial intelligence space.
"Sentiment is decidedly negative," Andrew Keches, a credit analyst at Barclays, wrote in a note to clients on Tuesday, referring broadly to corporate debt in tech. Keches highlighted the "speed at which AI vibes are shifting on a day-to-day basis."
CoreWeave, which went public in March of last year and reached a peak market cap of about $90 billion three months later, is now valued at roughly $34 billion, with its stock down 29% this month. Its unsecured debt, meanwhile, is sporting a yield of about 15%.
CoreWeave's stock move this month
The spread on CoreWeave's five-year credit default swaps, which are insurance against default, is up 164% in the past year and 30% in October. It last stood at nearly 1,067 basis points, or 10.67%.
CoreWeave declined to comment.
The story is playing out across the neocloud sector. Shares of Nebius are down 27% this month, while IREN's stock is down 32%. In Australia, shares of data center operator NextDC plunged 40% on Wednesday after the company slashed its annual earnings forecast. Earlier this month, Australian data center company Firmus scrapped its planned IPO, citing market volatility and conditions.
U.K. neocloud Nscale is now under the microscope as investors wait to see whether the Nvidia-backed company will go through with its IPO. The company filed to go public on the New York Stock Exchange last month.
A representative from Nscale declined to comment.
On hold until midtermsCoreWeave is the biggest of the pack, and is intimately tied to the U.S. AI market. Nvidia is its top institutional investor, with a stake of about 9%, according to FactSet. And more than two-thirds of CoreWeave's revenue last year came from Microsoft.
That's put a spotlight on CoreWeave's financials and its ability to remain viable. The company has about $20.7 billion in debt coming due through 2030 and another $14.9 billion thereafter, with the prospects of higher interest rates on future financing.
Sources on credit desks told CNBC that the high-yield debt market is effectively on hold until after the midterm elections in two weeks given ongoing concerns about the political pushback that data centers are facing. One source, who asked not to be named because of the sensitivity of the matter, said fixed income investors "want permitting and regulatory requirements to be substantially resolved" before they commit financing.
"Given recent turbulence, pausing makes sense," Seth Meyer, global head of client portfolio Management at Janus Henderson, said in an interview.
watch now
CoreWeave CEO Mike Intrator, who co-founded the company in 2017 initially as a crypto mining venture, sent a memo to employees on Thursday, which CNBC obtained, to try and tamp down concern. Intrator stressed that the company maintains a range of funding options.
"Our financing model combines infrastructure-backed borrowing, corporate debt, equity, and customer prepayments," Intrator wrote. He added that the company has "additional flexibility to raise equity over time as market conditions and our capital needs warrant."
CoreWeave had $5.5 billion of cash and equivalents at the end of the second quarter. The company is expected to report third-quarter results next month. Analysts expect negative free cash flow in the period to swell to $10.1 billion, the highest since the company started reporting quarterly financials, according to FactSet.
One issue being debated heading into the report is how much more capital CoreWeave needs to raise. Rob Oliver, a software analyst at Baird, is estimating roughly $30 billion in 2027.
"Earnings may address financing measures to shore up confidence," Oliver said in an interview. "But they wouldn't need that capital until the first quarter."
Another question is whether Nvidia step in if necessary?
Nvidia, which supplies the graphics processing units that CoreWeave rents out, invested $2 billion in January for a 10% stake. The purchase price was $87.20 a share. The stock is now trading at $61.82 even after jumping 6% the day of the announcement.
While Nvidia CEO Jensen Huang said last week that CoreWeave doesn't need a backstop, some investors say the chip giant's further participation may be necessary if credit conditions continue to worsen.
Nvidia didn't immediately respond to a request for comment.
Analysts at Goldman Sachs, JPMorgan Chase and Barclays have put out bullish notes on the company this week, highlighting the company's GPU-backed loans and its solid list of investment grade customers like Microsoft and Meta. Goldman analysts emphasized the company's strength in the market relative to many of its neocloud competitors.
"Not all neoclouds are created equal," they wrote, in upgrading their rating to buy from hold. "CoreWeave is likely in the top quartile of neoclouds, if not the top decile, when measured on performance and ability to execute."
—CNBC's Michelle Fox and Jordan Novet contributed to this report.
The biggest warning for artificial intelligence (AI) stocks right now might not come from valuations, high earnings expectations, or the demand for semiconductor chips.
It might come from the bond market.
In the past two weeks or so, CoreWeave's (CRWV -0.53%) share price dropped more than 30%. The company's bonds also suffered a sharp sell-off. Bonds issued earlier this year with a yield of 9.675% are now yielding around 15%.
In other words, the market is now pricing in much more risk for one of the AI trade's biggest names.
The big question now is whether this marks the beginning of a broad risk repricing driven by concerns that AI companies won't generate sufficient return on investment (ROI) from the build-out.
Image source: The Motley Fool.
The bond market has questions about the economics of AI
CoreWeave operates data centers that provide computing power to all of the big AI developers. Building all that infrastructure obviously can be enormously costly. Its potential revenue generation is substantial, but it could be a while before these companies break even on their investments.
CRWV CoreWeave$61.80-$0.33 (-0.53%)
NASDAQ · As of 3:19 PM ET 10/21/26
A year ago, investors were comfortable with the risk because they were focused only on the long-term potential of how big AI could get. Over the past few months, however, investors are looking for results. Stocks aren't just popping based on how much they're spending. They're starting to move based on revenue and earnings growth.
CoreWeave's current financial condition suggests some of these companies may have gotten out over their skis.
Consider the potential financial impact if the company needs to issue more debt. A hypothetical $1 billion loan at original terms would cost nearly $97 million in annual interest expense. If CoreWeave needs to do another raise at the current implied rate of 15%, it would add roughly $53 million in expenses. If the market is already concerned about ROI, it will be even more challenging to generate the cash flow needed to break even.
There's another potential complication. As we've seen in other tech booms, both hardware and software can become outdated quickly and much cheaper over time. Not only could a lot of that spend result in obsolete architecture, but the margin of less expensive future tech also makes it more difficult to become profitable.
History suggests investors pay attention to the credit markets
The economy went through a similar tech build-out around 30 years ago, during the advent of the internet. Telecom companies spent huge amounts to build out the fiber-optic networks to support an anticipated surge in internet traffic.
The internet boom happened, and much of the tech and infrastructure proved to be necessary to its success. However, many companies had revenue expectations that proved overly optimistic. They borrowed billions of dollars based on those forecasts and ended up in dire financial straits. Many companies became highly indebted or eventually went bankrupt.
It's unclear whether CoreWeave or any of the companies in this space are headed down the same path. But the bond market's reaction to its financial condition isn't encouraging. It does suggest that investors might want to be more discerning here.
Credit spreads overall have jumped by about 50 basis points over the past month, suggesting that the bond market is getting a little more nervous. They're not yet at the level that would indicate real stress in the system, but it's an early warning that investors shouldn't ignore.
QQQ Invesco QQQ Trust$724.66+$7.03 (+0.98%)
NASDAQ · As of 3:17 PM ET 10/21/26
Here's what I'd do with VOO and QQQ
I wouldn't sell tech stocks or the S&P 500 (^GSPC +0.41%) just because CoreWeave's borrowing costs are rising. That means maintaining a buy-and-hold perspective on both the Vanguard S&P 500 ETF (VOO +0.41%) and the Invesco QQQ ETF (QQQ +0.98%).
I do think it's time to distinguish between heavily indebted companies and those that have been able to finance AI expansion more heavily through generated cash flow. That's the quality tilt that can make a difference if the AI trade begins to weaken.
The S&P 500 is still only 1% off its highs. But the bond market may be the real warning sign here.
CoreWeave (CRWV -0.63%) stock has had some trouble lately. From Oct. 12 to Oct. 16, it lost about 25% of its value -- not a pretty sell-off. CoreWeave's sell-off is due to spiking debt yields, which indicates that the secondary bond market doesn't think CoreWeave will be able to pay these obligations back. However, a major CoreWeave investor doesn't think this is a problem.
The investor? None other than Nvidia CEO Jensen Huang. Nvidia has been a major CoreWeave investor, and as of the second quarter, it held about 47 million shares. That's about 10% of CoreWeave's total float, so it's no small position. Huang isn't as concerned as some may think, as he told investors at an unrelated event that he's "optimistic, and their (CoreWeave's) cost of capital is actually decreasing."
So, the market thinks one thing, and the CEO of the largest company in the world, who is a CoreWeave investor and supplier, thinks another. Who is right?
Image source: Nvidia Corporation.
Spiking yields are a concern
This sell-off is due to secondary yield on CoreWeave's debt spiking to 15%. Most individual investors don't dip their toes into corporate debt, so this area may be a bit unfamiliar.
CoreWeave is a cloud computing provider, which means it provides AI-focused cloud computing services. It has several big-name clients, including Microsoft and Meta Platforms, and to serve these customers, it has to build a lot of computing power. Data centers and the equipment that goes inside them aren't cheap, and CoreWeave doesn't have a different core business to support them as the major cloud computing players do.
So, CoreWeave has to raise capital. It can do this in two primary ways as a public company: issue shares or issue debt. While CoreWeave's share count has risen, it has also issued a lot of debt.
CRWV CoreWeave$61.74-$0.39 (-0.63%)
NASDAQ · As of 3:15 PM ET 10/21/26
These bonds are issued at a certain price and yield. So, CoreWeave will pay the bondholders an interest payment, just like a regular Treasury bond. However, this debt can also be traded on a secondary market. When investors get concerned that the company may not be able to meet its obligations, the price of the bond tumbles, causing the yield to rise.
CoreWeave's bonds are now starting to yield over 15%. That's a sign that the market doesn't believe that CoreWeave will be able to pay its debts. In fact, it's classified as "distressed debt," which is worse than "junk bonds." That's not a great place to be in, so what should investors do?
The people in the know aren't panicking
CoreWeave is currently an unprofitable company and is spending every penny it can get its hands on to increase its computing power. It's also growing revenue very rapidly, so it may be able to close the gap.
Huang's comments about CoreWeave's cost of capital going down point to how high the yields of its bonds are when they're issued for the first time. So, there is a mismatch between what the market believes and what creditors issuing the bonds believe. I think this is the key distinction here.
The market is currently bearish on all things AI, and is back to worrying about how much money is being spent on the AI build-out. CoreWeave's debt is one of the obvious places to sell off if you think the entire AI build-out thesis is in trouble. However, I think the market has it wrong, because all the AI hyperscalers have indicated full steam ahead, and that AI is still transforming how businesses are being run.
While I'm not racing to buy CoreWeave's debt, I'm also not bearish on it. As for CoreWeave's stock, if it can do exactly what it says it will do to meet the obligations of major deals it has signed, the stock should work out just fine. However, CoreWeave will eventually need to flip the probability switch.
Artificial intelligence (AI) ETFs can capture growth that broad market funds miss, according to Zeno Mercer, head of robotics and AI research at VettaFi. Mercer joined ETF Prime host Nate Geraci to discuss whether heavy AI spending will pay off.
Key Takeaways:
Mercer says AI is in a J-curve, with heavy spending now before the payoff arrives.
Mercer favors AI suppliers with several growth sources over narrow, single-theme funds.
Chan expects inflation to stay higher for longer and sees AI in its third or fourth inning.
Mercer co-developed the index behind the ROBO Global Artificial Intelligence ETF (THNQ), which recently topped $500 million in assets. He tied the recent AI pullback partly to debt financing concerns at AI cloud providers like CoreWeave, Inc. (CRWV).
Still, Mercer sees a long runway ahead. AI is in what he calls a “J-curve,” where heavy spending and rising energy costs come before the payoff. Many of those pain points could fade within about five years.
See more: AI ETFs: Beyond Chips & Hyperscalers
Physical AI, or robots doing real-world work, is the next big wave. Millions of people already wear sensor gloves to teach AI physical tasks, Mercer said. Manufacturing alone employs about 300 million workers worldwide.
Looking Past the Hyperscalers With AI ETFs
Broad index funds may not be enough to capture that growth. Mercer said the Vanguard S&P 500 ETF (VOO) has trailed about 95% of AI strategies this year, many of which are up 30% to 50%. Smaller suppliers selling into AI can grow faster than the largest companies.
However, he cautioned against getting too narrow and prefers areas with several sources of growth. Photonics, or light-based technology, serves data centers as well as welding lasers and lidar.
Mercer is also skeptical of ETFs that let AI pick stocks on its own. “If everyone is getting the same advice, there’s no alpha,” he said, referring to market-beating returns. A mix of human and AI judgment will likely lead until those funds show multiyear results.
Geraci also spoke with Howard Chan, founder and CEO of Kurv Investment Management. A former PIMCO executive, Chan launched the firm after the SEC’s 2019 derivatives rule opened ETFs to institutional options strategies.
Chan expects inflation to stay “higher for longer” because refineries shut during the Middle East war could take years to restart. For that backdrop, the Kurv Gold Enhanced Income ETF (KGLD) uses options to generate income from gold.
The Kurv Technology Titan Select ETF (KQQQ) uses call spreads to keep more upside than a standard covered call. On AI, Chan sees the buildout in the “third or fourth inning” and prefers suppliers earning cash from hyperscaler spending.
Listen to the Entire Episode of ETF Prime
For more ETF Prime podcast episodes, visit our ETF Prime Content Hub.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for THNQ, for which it receives an index licensing fee. However, THNQ is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi and its affiliates have no obligation or liability in connection with the issuance, administration, marketing, or trading of THNQ.
CoreWeave (CRWV -1.06%) has had a brutal week. Its shares plunged nearly 25% as investors grew concerned about the financial risks behind the artificial intelligence infrastructure boom. For investors, that raises an obvious question: Is this an opportunity to buy a promising AI company at a discount, or a warning to stay away?
I'd put CoreWeave on my watch list, but I wouldn't rush to buy the dip. The company has substantial growth potential, but its debt, competitive pressures, and valuation make it a riskier investment than its revenue growth alone might suggest.
Here's how I'd assess the opportunity.
Image source: Getty Images.
The long-term opportunity remains attractive.
CoreWeave provides the computing power that AI companies need to train and run their models. As businesses adopt AI, demand for that computing capacity could grow for years.
The company has already established itself as an important player in this market. In the second quarter of 2026, revenue reached $2.6 billion, up 112% year over year, while its revenue backlog stood at roughly $104 billion.
Those figures suggest substantial demand for CoreWeave's services. If the company can deliver the infrastructure customers need and turn those commitments into profitable business, it could benefit from years of growth in AI computing.
But a promising market doesn't guarantee attractive shareholder returns. Investors must also consider how much they are paying for that opportunity and what could prevent the company from delivering on its potential.
CRWV CoreWeave$61.47-$0.66 (-1.06%)
NASDAQ · As of 12:49 PM ET 10/21/26
Why the sell-off deserves attention
One concern is CoreWeave's debt load, which stands at approximately $50 billion.
The company borrows heavily to build data centers and acquire the expensive computing equipment needed to serve customers. Recently, yields on some of its bonds surged to around 15%-16%, signaling that lenders have become more concerned about the risk of default.
This doesn't mean CoreWeave is about to go bankrupt. However, it highlights the financial pressure that can accompany such rapid expansion. If borrowing remains expensive, future projects could become more costly to finance, potentially reducing profits or limiting growth.
Competition adds another challenge. Amazon, Microsoft, and Alphabet have enormous resources to invest in AI infrastructure, while specialized providers such as Nebius are expanding their own capacity. As more computing power becomes available, CoreWeave may face greater pressure to compete on price and performance.
The key question is whether CoreWeave can turn its growth into attractive returns despite its financing costs and increasing competition.
What would make the stock a buy?
After a nearly 25% decline, investors might assume CoreWeave has become a bargain. But the size of a stock's decline tells us little about its value on its own. I'd focus on two things.
First is valuation. After a steep decline, investors should reassess CoreWeave's market value relative to its future earnings potential. If the stock still assumes years of near-perfect execution -- and if investors think that the outlook has changed -- the current pullback may just be the beginning of a bigger correction.
Second is execution. CoreWeave needs to show that it can deliver infrastructure on schedule, keep its expensive computing equipment productively utilized, and generate attractive returns on its investments. Its customer relationships and AI expertise could help it stand out, but it must continue proving its value as competition intensifies.
If investors conclude that the current valuation is compelling while the business continues executing, the recent sell-off could create an opportunity. But that too will require a few quarters of close monitoring before investors can make a sound decision.
Should investors buy the dip?
CoreWeave remains an interesting way to invest in the growth of AI computing. Its rapid revenue growth and substantial customer backlog give it a credible opportunity to become a major infrastructure provider.
But I wouldn't rush to buy after a 25% decline. Its debt load, intense competition, and demanding capital requirements mean that strong growth alone won't guarantee attractive shareholder returns.
For investors with a long time horizon and a high tolerance for risk, CoreWeave could offer substantial upside. They may consider initiating a position in the future when two conditions are met: a sufficient margin of safety and a turnaround from loss to profitability.
CoreWeave's stock and bonds plunged over the past week as investors grew worried about its debt. CoreWeave's revenue is backed by multiyear contracts with some of the world's largest tech companies.
Nebius and CoreWeave stocks have sold off this month as investors have remained concerned about the AI bubble. CoreWeave has slumped by over 60% from its peak, erasing billions of dollars in value.
CoreWeave's (CRWV -1.72%) stock is having a brutal October. As of Oct. 16, shares of the neocloud company have fallen nearly 25% for the week.
But the most worrying signal isn't coming from the stock market. It's coming from the bond market. The yields on some of the company's bonds climbed to roughly 15%-16%, and investors are questioning whether CoreWeave can finance its enormous expansion of artificial intelligence infrastructure without taking on too much financial risk.
My view: CoreWeave's long-term opportunity remains substantial, but the sell-off highlights a risk that investors cannot afford to ignore.
Image source: Getty Images.
Why is CoreWeave stock falling? CoreWeave has approximately $50 billion in debt, according to market data cited by Reuters. Its business requires enormous upfront investments in GPUs, data centers, networking equipment, and power infrastructure. As such, the company must spend heavily to build capacity before it can generate the revenue expected from that infrastructure.
That business model works if customer demand remains strong, projects come online on schedule, and the resulting cash flow supports the debt. But higher interest rates make borrowing more expensive, while concerns about future profitability can make lenders less willing to finance new projects.
The bond market has reflected that anxiety. Yields on some CoreWeave bonds surged toward 16%, and the cost of insuring against a potential default rose sharply. These market signals do not mean bankruptcy is imminent, but they indicate that investors are demanding much higher compensation for taking on the company's credit risk.
And the implication for the business may be huge. CoreWeave may face a higher cost of capital just as it needs enormous amounts of money to expand. That could reduce future profits, constrain growth, or force management to seek more expensive financing.
CRWV CoreWeave$61.06-$1.07 (-1.72%)
NASDAQ · As of 10:22 AM ET 10/21/26
The business hasn't stopped growing, though Despite the recent concerns, CoreWeave's operating performance has not suddenly collapsed. In the second quarter of 2026, revenue rose 112% year over year to $2.6 billion. Its revenue backlog reached approximately $104 billion, excluding more than $25 billion in net new customer commitments added early in the third quarter.
Those figures suggest substantial demand for the company's AI cloud services. That's encouraging, but investors need to understand what these numbers do -- and do not -- tell us. A backlog represents potential future revenue under customer commitments. It isn't cash already collected, nor does it guarantee that every project will be delivered on schedule or generate the expected returns.
Meanwhile , CoreWeave reported a $626 million net loss in the second quarter, and net interest expense reached $640 million. Adjusted EBITDA was $1.51 billion, but that non-GAAP measure doesn't capture all the costs and cash demands that shareholders ultimately need to consider.
In short, CoreWeave has demonstrated that customers want its infrastructure. What it hasn't quite done yet is demonstrate that the economics of supplying that infrastructure can support its financial obligations and create lasting shareholder value.
Rather than trying to predict when the stock will bottom, I'd focus on three indicators that could clarify the investment case.
Financing costs. Watch CoreWeave's bond prices and yields. A sustained recovery would suggest that credit-market concerns are easing. If borrowing costs remain elevated, the company may face more expensive financing for future expansion. Bond yields can be volatile, so one day's movement is less important than the trend. Cash generation and debt. Revenue growth is encouraging, but investors need evidence that CoreWeave can generate sufficient cash to service its debt and fund further expansion. Watch operating cash flow, capital expenditures, interest expense, and changes in debt in the coming quarters. Returns on infrastructure investment. CoreWeave needs to show that new capacity produces attractive economics. Customer demand, pricing, utilization, and the timing of infrastructure deployment will help determine whether its massive capital spending creates value or simply expands the balance sheet. These indicators are more useful than trying to guess the next move in the share price. They help investors distinguish a temporary market panic from a deterioration in the underlying investment thesis.
In short, the question for shareholders is no longer just how fast CoreWeave can grow. It's whether that growth can generate enough cash and profit to justify the capital required.
CoreWeave CRWV and Nebius stocks fell about 3% on Wednesday, even after comments from SpaceX executives boosted sentiment in the pre-market session.
The artificial intelligence infrastructure providers have come under pressure amid concerns about debt-funded expansion and a potential glut of computing capacity.
SpaceX chief Elon Musk said the company was receiving more requests for computing power than it could accommodate, reinforcing the argument that demand for AI infrastructure continues to outstrip supply.
"We are also, frankly, hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute. We could rent out our compute several times over if we said yes to everyone. That is just the situation here," Musk said on the earnings call.
"It is ridiculous. I do not think we are going to have a demand issue here. I am not saying this will happen, it is not impossible that we will have a six-month payback period for compute next year," he added.
SpaceX’s data centres and Grok agents also delivered stronger-than-expected profits in the third quarter, as the company shifts away from its traditional space business towards artificial intelligence, which now accounts for 52% of its income.
The reversal has added to the recent losses in the two stocks.
CoreWeave shares remained down about 27% over the past month, while Nebius had fallen approximately 26%, reflecting continued uncertainty over the financing and returns associated with the AI infrastructure boom.
CoreWeave also announced its CoreWeave Zero Trust AI Framework™ on Wednesday at NVIDIA GTC Berlin.
The customer-controlled security model allows customers to retain authority over access to their models, data and runtime environments, while bringing their existing security systems to CoreWeave Cloud.
The recent selloff reflects investors' growing scrutiny of companies borrowing heavily to build data centres and expand computing capacity for AI developers.
Credit markets have reflected those concerns.
The yield to maturity on CoreWeave's 9.625% bond due in 2032 reached 14.8%, while the yield on its 9.75% bond due in 2031 stood at around 14.9%.
The elevated yields indicate that investors are demanding substantial compensation for holding the company's debt, adding to questions about the cost of financing its expansion.
A Gartner report has also raised concerns about the long-term viability of specialised AI cloud providers, commonly known as neoclouds.
“By 2030, Gartner predicts that cost pressure and a lack of a differentiating business model will force over 80% of neocloud providers to cease independent operations.”
The forecast has intensified debate over whether smaller computing providers can sustain their capital-intensive business models as competition increases and financing conditions become more demanding.
Wall Street remains divided over CoreWeaveAnalysts have offered sharply different assessments of CoreWeave's financial risks following the recent market turmoil.
JPMorgan said on Friday that the company's financing requirements reflected the pace of its expansion rather than weak underlying project economics.
The bank pointed to strong demand for computing power and long-term take-or-pay contracts that secure customer commitments before new capacity becomes operational.
JPMorgan estimates that a typical five-year contract generates an unlevered internal rate of return in the mid-teens, above CoreWeave's estimated blended cost of capital of 9%-11%.
"Beyond the sound economics on a project for a typical 5-year contract agreement, there is an additional monetization lever in recontracting GPUs beyond the 5-year duration," the analysts added.
The bank also outlined how contract cash flows could help cushion the company against financing risks.
In a conservative scenario, capital spending accounts for about 51% of a five-year contract's value, with approximately 80% financed through asset-level debt.
After repaying that borrowing, CoreWeave could retain cash equivalent to about 16% of the contract's value, potentially covering roughly five years of data centre obligations even without renewing the agreement.
Goldman Sachs also upgraded CoreWeave to Buy from Neutral, arguing that investors may be overstating financing risks and underestimating the potential returns from its computing investments.
Analyst Gabriela Borges lowered her price target to $106 from $139 but continued to see substantial upside following the sharp sell-off.
HSBC Global Investment Research, however, maintained its bearish position.
The bank reiterated its Reduce rating and $39 price target, implying a potential downside of 36% from Monday's closing price.
HSBC kept its earnings estimates unchanged, leaving them significantly below Wall Street consensus forecasts.
It cited debt market pressures and moderating revenue from large language models as factors exacerbating structural concerns.
The bank also argued that hyperscalers could generate substantially more revenue per megawatt of computing capacity because they offer capacity through more lucrative short-term contracts and operate differentiated general-purpose cloud businesses.
These services contrast with the more commoditised, graphics processing unit-focused infrastructure offered by neocloud providers.
Nebius also sought to distinguish its funding strategy from that of other AI cloud providers facing pressure over debt.
Chief Revenue Officer Marc Boroditsky told CNBC on Wednesday at Nvidia's GTC Berlin conference that Nebius was less exposed to the market pressures affecting other providers because it did not carry the same kind of debt as CoreWeave.
He pointed to equity raises, convertible offerings and upfront customer payments as the company's principal funding sources.
Nebius also consistently secured higher upfront payments from customers to support future capital expenditure.
Boroditsky cited SpaceX's latest earnings as evidence of strong demand for AI computing capacity, saying computing supply “continues to fall far behind demand.”
He said Nebius could sell all its planned 2027 capacity immediately at current prices if it made that capacity available to its sales team.
The company is, however, deliberately retaining some capacity to meet future customer requirements.
Asked about 2028, Boroditsky said customers were seeking to secure capacity “further and further out,” suggesting that demand for computing infrastructure could remain strong beyond the next year.
The outlook has not prevented analysts from reassessing valuations across the sector.
Piper Sandler analyst James Fish lowered his price target on Nebius by 22% to $185 from $237 on Wednesday while maintaining a Neutral rating, according to The Fly.
The firm cited concerns over AI demand, returns on invested capital, and financing after several AI cloud stocks suffered losses exceeding 25%.
Piper reduced terminal valuation multiples across the sector, warning that stocks could remain “in the penalty box” until free cash flow improves or financing becomes clearer.
Still, the firm recommended gradually building positions during the pullback and reiterated CoreWeave as its preferred name, describing financing concerns surrounding the company as overblown relative to its assessment.
The contrasting views underline the central question facing AI infrastructure stocks: whether long-term demand for computing capacity will generate sufficient returns to justify the borrowing and capital spending required to build it.
CoreWeave Inc. (NASDAQ:CRWV) stock rose in Wednesday's premarket trading as Wall Street analysts remained divided over the AI cloud provider's growth prospects and mounting debt.
BERLIN--(BUSINESS WIRE)--CoreWeave, Inc. (Nasdaq: CRWV), The Essential Cloud for AI®, today announced the CoreWeave Zero Trust AI Framework™, a customer-controlled security model that gives customers authority over access to their models, data, and runtime environments. Unveiled at NVIDIA GTC Berlin, the framework lets customers bring the security systems they already operate to CoreWeave Cloud rather than rebuilding around a provider-defined security model. Agentic AI has changed what enterpri.
BERLIN--(BUSINESS WIRE)--CoreWeave, Inc. (Nasdaq: CRWV), The Essential Cloud for AI®, today announced CoreWeave Physical AI Launchables, a catalog of physical AI workloads packaged as Templates, built and tested by CoreWeave engineers, that let robotics, autonomous vehicle (AV), and simulation teams start a run with one command instead of rebuilding their environment first. Unveiled at NVIDIA GTC Berlin, CoreWeave Physical AI Launchables extends CoreWeave's platform into the engineering layer w.
AI stocks are selling off, and the reflex is to treat that as the market finally pricing in reality. Dan Ives, the longtime technology analyst who left Wedbush to launch Yorkville Ives, reads it the other way. By his estimate, less than 15% of total AI spending has actually happened. That number changes the question from whether the buildout pays off to which layer of it gets funded next, and that is a far more useful thing to be arguing about while the tape is red.
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Why the AI Spending Cycle Still Has Room to RunIves describes the AI cycle as a party that started around 9:30 p.m. and is now closer to 11:30 p.m. More companies keep getting let into the club. It is no longer just NVIDIA NASDAQ: NVDA and Jensen Huang holding the door. Advanced Micro Devices NASDAQ: AMD, Palantir Technologies NASDAQ: PLTR and Snowflake NYSE: SNOW are all inside now, and his view is that the night will run for several more hours.
That does not mean a smooth ride. Macro shocks, geopolitics, circular financing arrangements and capital expenditures (CapEx) are all live sources of white-knuckle moments. The argument is about duration, not comfort.
What AI Regulation Could Mean for Technology StocksTechnology has always moved faster than the rules written to govern it, and this cycle is no exception. Guardrails are coming, mostly in the form of self-regulation. The more interesting market read is competitive rather than moral. For the first time in roughly three decades, the United States appears to be ahead of China on the technology frontier, and a deliberate slowdown here does not come with a matching slowdown there.
There is also a positioning game inside the safety conversation. If the leading labs agree to throttle, the companies already at the top preserve their lead while everyone behind them stalls. Call it regulatory capture with better branding. Meta Platforms NASDAQ: META could accelerate into exactly that kind of pause.
Sovereign AI Gives Palantir a Different Kind of TailwindThe safety story is not only a risk line, it is a revenue line. Cybersecurity stocks have already shown what happens when enterprises decide protection is non-negotiable. Sovereign AI is the next version of that idea: companies want their data working for them without handing it wholesale to the model builders. Palantir has been selling that message for years, and NVIDIA has leaned into it too. One company’s constraint keeps turning into another company’s contract.
Install Base Is the Quiet Advantage for Meta, Microsoft and AppleMeta’s Muse assistant matters less as a product launch than as a monetization lever across roughly 3.5 billion users. Convert even a slice of that through advertising or commerce, and the math on Meta’s spending changes. The friction is already showing: Amazon blocked Muse from its store in September, which is a preview of how hard platforms will fight over whose agent touches the customer.
Microsoft NASDAQ: MSFT took a bruise on Copilot share, but Azure is the line that actually matters as enterprises migrate workloads. And Apple NASDAQ: AAPL, now under new CEO John Ternus, has 1.5 billion iPhones and roughly 2.5 billion iOS devices to work with. Being late is survivable with an install base like that. The 2027 anniversary iPhone is where Ternus gets judged.
Neoclouds Are Becoming a Real Layer of the AI BuildoutNebius Group NASDAQ: NBIS and CoreWeave NASDAQ: CRWV are spending like hyperscalers without hyperscaler balance sheets, and both posted quarters that looked like inflection points. The multiplier is the reason to care: roughly $10 of surrounding spend follows every dollar that goes into an NVIDIA chip. Power, cooling, networking, and eventually quantum work at International Business Machines NYSE: IBM all sit downstream of that.
Where the Risk Sits for Tesla, SpaceX and Enterprise SoftwareTesla NASDAQ: TSLA is stuck between two identities, and the robotaxi ramp has run slower than hoped. The next six to nine months are a prove-it window. Ives puts better than 80% odds on a Tesla merger with Space Exploration Technologies NASDAQ: SPCX by the end of 2027, built on the idea that the combined data is worth more than either piece alone. Worth noting independently: SPCX only listed in June, staggered lockups run into December, and other analysts covering the idea have called the timing uncertain.
Software is the messier group. Salesforce NYSE: CRM has an important stretch ahead to show customers are buying its AI story rather than building around it, while Adobe NASDAQ: ADBE and Intuit NASDAQ: INTU face harder structural questions.
The monetization signal finally showed up last quarter at Microsoft, Alphabet and Amazon. Watch whether it widens into financial services, government and healthcare budgets, because that is what turns a spending cycle into an earnings cycle.
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CoreWeave can overcome the market's skepticism about its debt.
That isn't the consensus view — some Coreweave debt remains deeply distressed with yields above 15%. But Coreweave should power through this tough stretch, according to John Lloyd, global head of multi-sector and corporate credit at Janus Henderson.
"It's a little bit of overreacting," Lloyd tells CNBC, referring to the sell-off in Coreweave bonds, which have tanked along with its equity.
Lloyd owns Coreweave 9.75% bonds due in 2031 in the firm's Multi-Sector Income Fund. The yield to maturity on the debt is now 15.97%, a more than 70% jump since its issuance in April. Bond prices and yields move in opposite directions.
"Bond prices are lower, spreads are wider, yields are wider, and I don't see a huge fundamental change in the ecosystem right now that would warrant that, other than their higher cost of financing, which I think they can get creative with," Lloyd added.
CoreWeave has taken on a massive amount of debt to fund its data center buildout. The company has roughly $51.6 billion in total debt, including about $35 billion in notes, bonds and loans.
The market is getting nervous about how CoreWeave will be able to keep financing its data centers, and at what cost. Its stock has tumbled 20% over the past week, while the spread on its five-year credit default swaps is 1,085 basis points — lower than earlier in the session but up 14% week over week. Spreads of 1,000 basis points and above are generally a sign of credit distress.
CoreWeave shares moved roughly 2% higher on Tuesday, after tumbling over the past several days and hitting a 52-week low earlier in the session. Its bond yields and spreads remain highly elevated.
Lloyd believes the selloff is a bump in the road for the neocloud company.
The market has been spooked by the jump in Treasury rates, which pushes up funding costs for companies, he explained. The focus largely turned to companies like CoreWeave that have refinance risk when rates move higher, he said.
CoreWeave leverage is high with a debt-to-equity ratio of 702%, up from 290% a year ago. Moreover, CoreWeave will spend an estimated $36.4 billion on capital expenditures this year against Ebitda of $7.5 billion, according to consensus estimates.
Revenue and Ebitda will ramp up next year, hitting $26.5 billion and $16.7 billion respectively, analysts estimate. But capex will hit $47.9 billion, indicating the company may need to finance its data center buildout with more equity issuance and/or debt.
Creative funding Lloyd isn't necessarily worried about CoreWeave's ability to finance its capital expenditures, despite the fact that its capex outweighs its free-cash flow.
"Next year … they're going to be generating operating free-cash flow that'll support some of that capex need," he said.
The company can also turn to other methods of funding, like more GPU financing, which will allow it to borrow against its graphics processing units or rental contracts, he noted. In addition, CoreWeave could ask its biggest customers — including Microsoft, Meta Platforms and OpenAI — to increase their prepayments, he added.
"They can probably get creative enough where they don't even need to come to the high-yield market," Lloyd said.
The company also doesn't have any near-term maturities, which means it isn't facing a refinancing risk anytime soon, he added.
CoreWeave's stock performance over the last month.
'Best in class'Meanwhile the supply/demand dynamic should remain tight across the AI compute landscape. Overall adoption rates within the ecosystem are running above consensus demand curves, he said. Add to that a bottleneck in supply, with chips and memory power sold out, and it's a nice set up for CoreWeave.
"All data point to the business model functioning very, very well," Lloyd said. "CoreWeave is one of the best-in-class at getting data centers up and actually running them," he added, noting that CoreWeave's financials have been improving throughout the year.
Another turning point could come if Anthropic goes forth with an IPO, expected in November, followed by OpenAI. Successful IPOs for the frontier labs could soothe market nerves and help support the neocloud operators.
"You just need more of those data points where people become more comfortable with the AI demand side," Lloyd said.
CoreWeave still needs to convince markets it can handle higher market rates and get through the financing bottlenecks.
Lloyd sees the company making it, albeit with some bumps along the way. The bonds should recover, he says, "just not in that straight line."
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CRWV over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
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Korean retail investors flooded an AI infrastructure IPO with record demand, then watched it crater on opening day. The forces behind that collapse reach far beyond Seoul and straight into the finances of the biggest GPU cloud names trading in…
Korean retail investors placed about 10.3 trillion won in subscription deposits for the Kosdaq IPO of Elice, a Seoul company that runs GPU data centers. That demand oversubscribed the retail tranche more than 400 times. On its debut on October 20, 2026, the stock still fell as much as 32%, to an intraday low of 61,400 won. The IPO had priced at 90,500 won, the top of its marketed range. A closing price had not been confirmed.
Elice is a “neocloud,” meaning it rents out GPU computing capacity, so its slide bears directly on CoreWeave (NASDAQ:CRWV) and Nebius Group (NASDAQ:NBIS | NBIS Price Prediction). On October 19, CoreWeave fell 0.44% to $61.12. Nebius rose 2.88% to $170.24.
What Elice Sold Versus What It Only Promised
The deal raised 201 billion won, about $151 million, the largest Kosdaq IPO of 2026 so far. Mirae Asset Securities and Samsung Securities underwrote it.
KAIST doctoral students founded Elice in 2015 as a coding-education platform. It now sells liquid-cooled GPU servers, modular data center platforms and AI-cluster software.
The money raised is only the committed portion. Chief executive Jae Won Kim said proceeds will fund more AI data centers in Korea and abroad, but the company named no sites, capacity or customers.
The business itself is growing. First-half 2026 revenue rose 200% to 34.4 billion won, and the company swung to an operating profit of 10.3 billion won.
Why 400 Times Demand Still Produced a Drop
When a retail tranche is oversubscribed that heavily, each investor receives only a small allocation. Many sell on the first day to lock in whatever gain they can, and pricing at the top of the range left almost no margin.
Market mood mattered too. Albert Yong, managing partner and chief investment officer at Petra Capital Management, said “Elice’s debut comes at a time when sentiment toward AI infrastructure companies has weakened, particularly in the US,” adding that it “has been highly volatile and often disconnected from underlying fundamentals.”
Less than two weeks earlier, Firmus Grid pulled its planned IPO, citing rising borrowing costs, competition, and uncertain returns on AI spending. Two weak signals in a row suggest it is getting harder for GPU-cloud builders to raise money.
How CoreWeave and Nebius Absorb the Signal
Elice’s funds are tiny compared with CoreWeave’s $9.4 billion in second-quarter capital spending. What carries over is the cost of money: interest expense hit $640 million, up from $267 million a year earlier, and third-quarter guidance calls for $860 to $940 million.
That is why the stock fell 23.85% over one week and 55.34% over one year, even with a $104 billion backlog. Investors are pricing in financing costs.
Nebius fell 18.96% over the same week but is still up 103.38% for the year. It holds $8.042 billion in cash, although three customers made up 24%, 21%, and 14% of second-quarter revenue.
What Could Change the Outlook for CoreWeave Stock
CoreWeave’s business is growing, but its shares respond to borrowing costs, and Elice’s debut shows that strong results do not protect a neocloud stock when funding sentiment turns. A major bank upgraded CoreWeave to buy on October 19, and the stock still fell that day. Rising interest expense is the reason the lower price has not eased pressure on the shares. Nebius looks better positioned because it has outperformed through the same AI selloff, although its customer concentration is a real risk.
Investors can measure this outlook against CoreWeave’s third-quarter earnings report. Revenue inside its $3.45 to $3.6 billion guidance, with interest expense at or below the low end of its range, would weaken the bearish case, as would Elice holding above 61,400 won.
Contact [email protected] for any questions or corrections.
Cathie Wood kicked off the new trading week making just a handful of trades. The co-founder, CEO, and chief investment officer at Ark Invest added to her stakes in CoreWeave (CRWV +1.77%), Scribe Therapeutics (SCTX +4.25%), and Freenome (FRNM +11.77%) on Monday.
The three stocks are trading 28% to 57% below their previous highs. Wood loves growth stocks, but she's not a momentum player. She's not afraid of adding to existing positions on the way down. Let's take a closer look at the three potentially opportunistic purchases by Ark in October.
Ark Investment Management CEO Cathie Wood. Image source: Getty Images.
1. CoreWeave
CoreWeave stock has been cut in half over the past year, but the 28% plunge over the past month has been particularly painful. The hyperscaler has been one of several AI plays that have corrected sharply in recent weeks, as the market resets its previously lofty valuation multiples.
CoreWeave was started by a few hedge fund friends who pooled their resources to buy GPUs to mine crypto. When that revenue stream hit a rough patch, they shifted to the AI opportunity. Their side hobby would become a business, and CoreWeave is now a leading provider of access to its data centers stocked with next-gen AI chips.
CRWV CoreWeave$62.20+$1.08 (+1.77%)
NASDAQ · As of 2:22 PM ET 10/20/26
Top-line growth has been spectacular. CoreWeave's revenue soared 113% in its latest quarter, accelerating in back-to-back quarters so far this year. Triple-digit revenue growth has been the default setting for CoreWeave amid the boom in demand for AI compute, but profitability has been another story.
It costs money to build out its hosting empire with costly components. Losses continue. Analysts don't expect CoreWeave to post an adjusted profit until 2028. Positive earnings on a reported basis aren't expected until 2029. If you think Wall Street pros are being conservative, consider that they have underestimated the deficit in two of the last three quarters.
The rise in interest rates has crashed the party for CoreWeave investors. It's a heavily leveraged company, so it's paying the price for rising borrowing costs. It's also now that much harder for customers to finance their lofty AI ambitions. The sell-off continues after Wood was a buyer on Monday. CoreWeave stock hit another 52-week low on Tuesday.
SCTX Scribe Therapeutics$20.22+$0.83 (+4.25%)
NASDAQ · As of 2:20 PM ET 10/20/26
2. Scribe Therapeutics
Scribe Therapeutics is another downward skier. Unlike traditional gene-editing stocks that rely on CRISPR therapies to alter DNA sequences, Scribe's proprietary ELXR platform uses epigenetic silencing to target disease-causing genes without altering the underlying DNA.
It's been a roller-coaster ride in its brief life as a public company. Scribe went public at $15 in July. It traded as high as $39.60 a month later, only to shed more than half its value, sliding back into the high teens today.
As a clinical-stage company, investors aren't buying for today's financial results. Scribe Therapeutics is a long-term swing for the fences. Cash burn is always the biggest concern for investors in assessing downside risk, but Scribe offers encouraging news on that front. In its first quarterly report as a public company, Scribe pointed out that it has enough cash on its hands to fund its operations through the first half of 2029.
FRNM Freenome$14.05+$1.48 (+11.77%)
NASDAQ · As of 2:18 PM ET 10/20/26
3. Freenome
The lone stock that Ark bought on Monday that went up was Freenome. The shares rose 7% on Monday, but the developer of blood-based screening tests is still down nearly 30% from last month's high. Freenome -- yes, it rhymes with genome -- is focusing on early cancer detection.
Its SimpleScreen CRC for colorectal cancer screening hit the market last month after receiving approval from the U.S. Food and Drug Administration (FDA) in the summer. This week, it received FDA clearance for its lung cancer screening test. There are other potential tests in the pipeline for its proprietary discovery platform.
Freenome went public in June after merging with a special purpose acquisition company (SPAC). Yes, SPAC deals are apparently still happening in 2026 after a deluge a few years ago generated largely disappointing results.
AI funding is drying up faster than anyone expected, and the race to go public before the window slams shut has turned desperate. One company stands between a potential $2 trillion valuation and a collapsing market, but a secretive trust…
Henry Blodget, founder of Business Insider, pointed out that Anthropic’s month-over-month revenue growth flattened last month. Neocloud company CoreWeave (NASDAQ: CRWV) is paying as much as 13% on new debt, if it can raise the money. Trading in its credit default swaps on the debt has ballooned. SoftBank, which owns several large AI companies, also has debt problems. Additionally, as many as 1,000 communities are trying to block AI data centers. Borrowing for these data centers could reach $1 trillion each year through 2030. Even the largest publicly traded tech companies cannot fund this. They have turned to Wall St. for funding. Shares in AI data center Elice dropped 33% as it launched its IPO. “That was the worst-ever opening day for a sizable Korean IPO, according to data compiled by Bloomberg.”
Finally, and perhaps most desperately, Reuters reported that “OpenAI seeks to accelerate fundraising ahead of Anthropic’s IPO.”
Together, this paints a picture of an industry trying to raise money that is no longer there, or at least is in short supply. Even Nvidia’s (NASDAQ: NVDA | NVDA Price Prediction) feverish investing across the industry seems to have slowed.
Over and over again, experienced investors have said this is not the year 2000. The dot-com bubble collapsed because too many startups ran out of money and could not make enough to stay in business. As more and more AI companies raise money at junk bond rates, this year looks more like the one a quarter of a century ago.
Optimists continue to argue that AI technology is far more important than the invention of the internet. Some argue it is even more important than building the railroads, which, in its era, required tremendous amounts of capital. Or perhaps a better example is the auto industry, where 564 companies failed.
Anthropic is probably the most valuable private AI company. Some speculate it will be worth $2 trillion on IPO day. That will make it more valuable than SpaceX (NASDAQ: SPCX) or Meta (NASDAQ: META). The thesis is that Anthropic’s revenue growth is the fastest among big AI companies, and management says the company is profitable. However, under traditional GAAP (Generally Accepted Accounting Principles), it is not, because of extraordinary model-training and infrastructure costs. It is part of the fuzzy math that surrounds AI. For example, Nvidia invests in an AI company, which then uses the money to buy its chips.
The pessimism that has set in about AI funding happened in days. Industry stocks have sold off but made a modest recovery. Their movement may determine whether any AI company will have an IPO this year.
Anthropic, with its large revenue base from business-to-business customers, can claim it is the most successful private AI company and the one most likely to thrive. It does appear to have one potential problem: going public. And odd trust which is set up for the company to benefit the world and not just make money apparently controls the Anthropic board. Disclosures about the arrangement are incomplete.
In this environment, the Anthropic IPO may make it to market, perhaps not at a $2 trillion valuation. No other AI firm is likely to make it out the IPO door this year.
Contact [email protected] for any questions or corrections.
Key Takeaways Some analysts see strong returns despite CoreWeave (CRWV)'s heavy upfront spending and debt load.CRWV raises its 2026 ARR target to $18.5B-$19.5B. Re-renting infrastructure: another source of revenues.GCPU, ARKW, NCLD and WGMI offer exposure to CoreWeave through ETFs. CoreWeave Inc.’s (CRWV - Free Report) shares plunged about 20% over the past week (as of Oct. 19, 2026) as rising bond yields heightened concerns about its debt-funded growth strategy. However, JPMorgan analysts, including Samik Chatterjee, believe CoreWeave’s business model remains fundamentally sound.
And concerns about CoreWeave’s rising debt and heavy cash burn may be exaggerated, according to analysts at JPMorgan Chase & Co, per Bloomberg, as mentioned on Yahoo Finance. They argue that the company’s growing financing needs reflect its rapid expansion rather than weak project profitability.
JPMorgan points to strong demand for computing capacity and long-term take-or-pay contracts, which secure customer commitments before new infrastructure becomes operational.
CoreWeave’s Contracts Offer Attractive ReturnsJPMorgan estimates that a typical five-year contract generates an unlevered internal rate of return (IRR) in the mid-teens, comfortably above the company’s estimated blended cost of capital of 9% to 11%.
After repaying the debt, CoreWeave could retain cash equivalent to about 16% of the contract’s value. According to JPMorgan, that amount could cover approximately five years of data center obligations, even if the company does not renew the contract.
CoreWeave may continue to rely on external financing to support its growth for several years. JPMorgan estimates that cash generated by existing operations may not be sufficient to fund expansion until 2030.
CoreWeave’s Higher Pricing Supports MarginsCoreWeave expects Q2 2026 contracts to deliver contribution margins 5-10 percentage points higher than recently-signed contracts. Pricing for its newer Blackwell and Vera Rubin products has hit record highs, while older-generation offerings are holding firm.
Heavy Upfront Investment, Strong Long-Term Cash FlowCoreWeave’s expansion requires heavy upfront investment, but revenue from secured contracts is expected to strengthen cash flow as new data centers become operational. Over time, earnings from each deployment should cover financing costs, repay asset-level debt and generate surplus cash, as suggested by JPMorgan.
Once the debt is cleared, the company can lease the infrastructure again after existing contracts expire, unlocking additional revenue without the original debt burden.
2026 Revenue Target RaisedCoreWeave raised its 2026 year-end annual recurring revenue (ARR) target to $18.5 billion-$19.5 billion, reflecting its growth ambitions and improving pricing environment. Full-year revenue guidance was raised to $12.4 billion-$13.2 billion from $12 billion-$13 billion.
Goldman Sachs Upgrades the Stock Goldman Sachs also upgraded the neocloud provider to Buy from Neutral, as mentioned on Yahoo Finance. The analyst also upped the stock's price target from $106 to $139 per share.
Meanwhile, CoreWeave ended the second quarter with a revenue backlog of about $104 billion, reflecting customer commitments already secured, according to Yorkville Ives partner and senior managing director Dan Ives, as quoted on Yahoo Finance.
Ives argued that these commitments are backed by actual demand rather than speculative data center construction, calling the stock’s sharp sell-off a potential buying opportunity.
What About Valuation?Despite ongoing debt and cash concerns, CoreWeave’s price/cash flow ratio stands at 16.40X currently, against 20.10X offered by the underlying Internet – Software industry. It shows the ratio is within the decent range. Price/Book (P/B) ratio stands at 5.47X, which looks fair, as compared with the industry average of 3.19X.
CoreWeave-Heavy ETFs in Focus The Zacks Rank #3 (Hold) stock CRWV has a strong momentum score. Retail investors rushed to buy CoreWeave shares as the stock plunged last week.
Investors still hesitant about investing in CoreWeave may consider gaining exposure to the stock through ETFs. CoreWeave-heavy ETFs include the Grayscale AI Compute ETF (GCPU - Free Report) , CoinShares Bitcoin Mining and Digital Power ETF (WGMI - Free Report) , ARK Next Generation Technology ETF (ARKW - Free Report) , and Roundhill Neocloud ETF (NCLD - Free Report) .
While GCPU allocates about 9% of its portfolio to CRWV shares, both ARKW and WGMI invest roughly 4% in the stock. NCLD invests about 8% of its weight in CRWV shares.
CoreWeave borrowed tens of billions to build AI infrastructure while interest rates climbed, and the next earnings report will reveal whether its operating leverage can actually outrun the financing costs threatening to swallow it whole.
CoreWeave (NASDAQ:CRWV) trades at $61.12. Its stock and bonds sold off last week on rate-hike fears, and the next earnings report will show what those fears actually cost.
CoreWeave leases GPU cloud capacity to enterprises and AI labs, competing as a pure-play rival to the hyperscaler clouds. It is one of the picks-and-shovels names driving the AI expansion (we covered seven other AI infrastructure suppliers, from power to cooling, in a free report here). It is building that capacity with borrowed money. Shares fell 23.85% over the past week as the 10-year Treasury yield touched 5.31% before falling to 5.09%.
A $104 Billion Backlog Is Turning Into Operating Leverage Second-quarter revenue rose 112.3% to $2.575 billion, beating estimates, while GAAP EPS of -$1.14 beat the -$1.447 consensus. Adjusted EBITDA reached $1.510 billion at a 59% margin. Backlog hit $104 billion, before more than $25 billion in early third-quarter commitments.
Pricing is improving too. In July, prices rose roughly 25% across SKUs, and the company expects adjusted operating margins to reach the low teens in the fourth quarter. The weighted average cost of debt was cut by almost 300 basis points, management says. Goldman Sachs (NYSE:GS | GS Price Prediction) just upgraded the stock to Buy from Neutral after the drawdown.
Interest Costs Already Dwarf Operating Profit Interest expense hit $640 million last quarter, up from $267 million a year earlier, against an operating loss of $49 million. Management guided third-quarter interest to $860 million to $940 million. Total debt reached $51.6 billion, up from $29.8 billion at year-end, and debt-to-equity stands at 8.94.
The expansion keeps eating capital. Full-year capex guidance is $35 billion to $39 billion, and second-quarter free cash flow was -$5.743 billion. With the 10-year yield in the 93.2 percentile of its past year, each new loan prices off a higher base. A securities class action over construction delays is also pending.
One Earnings Report Can Settle This Debate CoreWeave has more than $6.9 billion in liquidity, and management says asset-level debt gets repaid over each roughly five-year customer contract. Whether margins grow faster than interest costs remains uncertain. The third-quarter report provides the first clean test.
Analysts Target $140 While the Stock Trails the Market The average analyst target of $140.58 implies 130% upside, but targets are estimates. Some may date from when the stock traded near its $141.79 52-week high. Of 42 analysts:
Strong Buy: 8 Buy: 23 Hold: 8 Sell: 2 Strong Sell: 1 CoreWeave is down 14.65% year to date, while the S&P 500 is up 12.42%. Over the past year, the stock is down 55.34% against the index’s 15.38% gain. It trades at about 24x EV/EBITDA, near its $59.51 52-week low.
Interest Expense Will Decide CoreWeave’s Next Move At $61.12, CoreWeave’s outlook depends on financing costs.
The financing and rate concerns will show up in one place: the interest expense line. The figure to compare it against is the $860 million to $940 million guidance, and then against adjusted operating income guidance of $200 million to $260 million.
A bullish case needs interest at or below the low end, adjusted margins tracking toward the low teens, and new debt priced at tighter spreads. A bearish case builds if interest breaks above the range, if refinancing costs climb with Treasury yields, or if delivery delays push revenue out while debt keeps accruing.
If the third quarter confirms operating leverage, investors may reconsider a stock trading near its 52-week low. But before that report, the bullish case depends on cheaper money just as the 10-year sits near 5.09%.
Until margin growth exceeds interest expense, financing risk remains the central question for the stock.
Contact [email protected] for any questions or corrections.
Key Takeaways AI financing fears hit CoreWeave and Nebius, but chip demand remains strong.Mag-7 stocks offer mixed FY27 earnings growth prospects and valuations.NVIDIA looks attractive, while Tesla's lofty valuation raises concerns. Technology stocks came under pressure last week as concerns about AI financing and spending weighed on investor sentiment. The sell-off hit major AI infrastructure players and pushed both the S&P 500 and Nasdaq Composite into negative territory for the week.
AI infrastructure providers CoreWeave CRWV and Nebius NBIS each ended the week down more than 25%. Both companies, along with Oracle (ORCL - Free Report) , are facing questions about their ability to generate free cash flow (read: AI Debt Boom: ETF Areas to Play).
Baird technology strategist Ted Mortonson told Yahoo Finance that these companies are likely among the weakest in the tech sector in terms of free cash flow. He also highlighted the rising cost of capital amid inflation worries and growing scrutiny of the financial arrangements supporting the AI boom.
Chip Industry Signals Point to Strong AI DemandWhile AI infrastructure stocks struggled, comments from semiconductor equipment maker ASML (ASML - Free Report) and contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSM - Free Report) offered a more encouraging picture of underlying demand (read: TSMC's Record Q3 Earnings & Upbeat Outlook Put These ETFs in Focus).
Their commentary suggests that demand for AI chips and related infrastructure remains robust, even as investors grow more cautious about how companies finance their expansion and convert spending into profits.
UBS strategists similarly viewed the latest volatility as a recalibration of expectations rather than a fundamental break in the AI investment story, as quoted on Yahoo Finance (read: Buy the Dip in Semiconductor Stocks & ETFs?).
Earnings Growth Matters Ulrike Hoffmann-Burchardi, UBS's chief investment officer of the Americas and global head of equities, advised investors to focus on companies where AI spending is translating into sustainable earnings growth and wider adoption across businesses and consumers, as quoted on the same Yahoo Finance article.
Investors will now be watching to see whether massive AI investments can generate durable profits and justify the valuations attached to AI-related stocks.
Let’s dig into the prospects of some well-known AI plays.
Meta
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The above table shows that Meta's (META - Free Report) earnings growth outlook is moderate for FY27, although its recent earnings growth has been lackluster. Its valuation appears fair, with a forward P/E of 22.41X.
Amazon
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Amazon (AMZN - Free Report) 's earnings growth outlook looks mixed, while its valuation appears cheap, with a forward P/E of 19.21X.
Alphabet
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Alphabet (GOOGL - Free Report) 's earnings growth outlook for FY27 looks downbeat, although its valuation appears cheap, with a forward P/E of 16.58X.
Apple
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Apple (AAPL - Free Report) looks to be a decent play from an earnings-growth perspective. Its shares trade at a forward P/E of 41.03X, making the stock neither particularly cheap nor excessively expensive. Apple-heavy ETFs include the likes of Global X PureCap MSCI Information Technology ETF GXPT (read: Apple Takes Aim at the Smart Home: ETFs to Tap?).
NVIDIA
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NVIDIA (NVDA - Free Report) is well positioned to benefit from massive AI investments by hyperscalers, which have been driving its major share of revenue growth.The theory is supported by NVIDIA's financial results: in its fiscal Q2 2027, data center revenue reached $89 billion, up 117% year over year.
The Zacks Rank #1 (Strong Buy) stock trades at a forward P/E of only 23.03X, suggesting an attractive valuation. NVDA is up a modest 13.4% this year (as of Oct. 16, 2026). Investors can gain exposure to NVDA through the VanEck Semiconductor ETF(SMH - Free Report) .
Tesla
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Tesla (TSLA - Free Report) appears to be a decent FY27 play from an earnings-growth perspective, but its valuation is a concern. TSLA shares trade at a lofty forward P/E of 209.73X. This high valuation could face pressure if earnings growth fails to justify the premium. TSLA is down 19% this year (as of Oct. 16, 2026).
Microsoft
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Microsoft (MSFT - Free Report) shares trade at a forward P/E of 26.92X, while MSFT’s earnings-growth outlook looks relatively strong compared with other hyperscalers. Technology Select Sector SPDR Fund (XLK - Free Report) can be tapped to play MSFT in the basket form.
CoreWeave and Nebius both sold every GPU they brought online in Q2, yet one carries billions in debt while the other runs on customer prepayments. A credit squeeze could expose that difference fast.
CoreWeave shares fell more than 5% in premarket trading on Tuesday as oil prices climbed above $110 a barrel, reviving concerns about risk assets after US stocks recovered on Monday following last week's losses.
S&P 500 futures were down 0.09%, while Nasdaq 100 futures fell 0.5%.
HSBC Global Investment Research also reiterated its bearish outlook on CoreWeave, warning that its business model could struggle to generate returns comparable to those of larger cloud computing companies.
The AI computing provider's shares plunged about 20% last week as rising bond yields intensified concerns over its debt-funded expansion.
Worries about whether revenue from artificial intelligence would justify the industry's enormous infrastructure investments added to the selling pressure, following a Gartner forecast that questioned the sustainability of returns across the sector.
In a research note on Monday, HSBC maintained its Reduce rating on CoreWeave and retained its price target of $39, implying a potential downside of 36% from Monday's closing price.
The bank also kept its earnings estimates unchanged, leaving them significantly below Wall Street consensus forecasts.
Debt market woes and moderating LLM revenues exacerbate structural concerns, it said.
HSBC said hyperscalers could generate substantially more revenue per megawatt of computing capacity because they offer capacity under more lucrative short-term contracts and operate differentiated general-purpose cloud businesses.
These services contrast with the more commoditised, graphics processing unit-focused infrastructure offered by neocloud providers.
Hyperscalers also serve numerous smaller customers that purchase a broader technology stack, whereas neocloud companies derive most of their revenue from large customers seeking bare-metal computing instances.
HSBC acknowledged that neocloud providers had secured several lucrative short-term contracts between May and September 2026.
CoreWeave secured three-to-six-month contracts in September at an annualised revenue rate of approximately $40 million per megawatt. HSBC also cited agreements involving SpaceX, Anthropic and Google that could generate between $22 million and $50 million per megawatt annually.
However, HSBC warned that the economics underpinning such deals could come under pressure.
"In this context, we note a slight moderation in the pace of growth for LLM providers, which could moderate demand for spot compute capacity. We also note rising yields and debt market concerns could stop neoclouds from building speculative capacity, which could have been offered under lucrative short-term contracts," HSBC said.
The bank's 2028-2030 non-GAAP earnings-per-share estimates are 50%-70% below consensus.
It expects CoreWeave to achieve a long-term non-GAAP operating margin of 15%-16%, compared with management's guidance of about 25%.
HSBC's assessment contrasts with JPMorgan's more optimistic view of CoreWeave, with the bank arguing that investor concerns about mounting debt and rapid cash burn may be overstated.
In a Friday note, equity analysts including Samik Chatterjee said the company's financing requirements reflected the pace of its expansion rather than weak project economics.
The analysts pointed to strong demand for computing power and long-term take-or-pay contracts that secure customers before new capacity becomes operational.
JPMorgan estimates that a typical five-year contract generates an unlevered internal rate of return in the mid-teens, exceeding CoreWeave's estimated blended cost of capital of 9%-11%.
"Beyond the sound economics on a project for a typical 5-year contract agreement, there is an additional monetization lever in recontracting GPUs beyond the 5-year duration," the analysts added.
The bank also argued that contract economics provide a buffer against debt-related risks.
In a conservative scenario, capital spending accounts for about 51% of a five-year contract's value, with approximately 80% financed through asset-level debt.
After repaying that borrowing, CoreWeave could retain cash equivalent to about 16% of the contract's value, potentially covering roughly five years of data centre obligations even without renewing the agreement.
Despite its positive assessment of project economics, JPMorgan acknowledged that CoreWeave's aggressive expansion would continue to weigh on near-term cash flow.
The bank estimates that each gigawatt of fully operational capacity could generate $10 billion to $15 billion in annual revenue.
However, bringing an additional gigawatt online requires more than $35 billion in upfront capital expenditure.
"The cash burn is not a function of unfavorable economics per project but more of the capacity being ramped each year relative to the installed active capacity at this time," the analysts wrote.
Cantor Fitzgerald has also maintained its Overweight rating on CoreWeave, with a $176 price target.
The firm argued that the company does not face a demand problem, noting that customers continue to seek computing power while available capacity remains scarce.
CoreWeave's bond yields spiked to record levels and the stock cratered to its lowest point of 2026, yet dozens of analysts are racing to defend a price target more than double where shares trade today.
CoreWeave Inc. (NASDAQ:CRWV) shares closed at $61.39 on Monday, about 56% below their 52-week high of $139.93. HSBC sees more downside ahead for the AI cloud provider.
Nervozita kolem financování umělé inteligence z trhů nemizí. Po problémech CoreWeave investory znepokojil i slabý debut korejské společnosti Elice, zatímco pozornost se přesouvá k výsledkům firem, které mají ukázat, zda současný AI boom stojí na dostatečně pevných základech, komentuje analytik Tomáš Vlk.
Článek se odemkne 20.10.2026 12:35
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Most global banks have limited exposure to CoreWeave (CRWV.O), J.P. Morgan estimated on Tuesday, after the Nvidia-backed cloud company's stocks and bonds slumped last week on investor worries over debt financing.
AI infrastructure spending has been rattling investors globally as tech companies are on a fundraising spree from private-credit investors, banks and bond markets to rapidly expand, while questions over returns on these investments swell.
While large US investment banks along with Japan's MUFG (8306.T) could potentially have exposure of about $1 billion to $3 billion in CoreWeave, most European and Asian players have less than $500 million, the Wall Street brokerage said.
Much of this is through delayed draw term loans, J.P. Morgan said, which are largely held through special-purpose vehicles, with capital released as projects meet milestones.
"From the perspective of financing banks, we view bank exposures to CoreWeave as well managed and very well secured," J.P. Morgan analysts led by Kian Abouhossein said in a note.
The brokerage said estimates are based on "simplified assumptions" because banks provide limited disclosure on their exposure to the AI investment cycle.
J.P. Morgan has an "overweight" rating on CoreWeave with a target price of $125 for 2027-end.
The cloud company has about $24 billion of committed delayed draw term loans, including $15 billion drawn and $9 billion undrawn, according to the brokerage.
CoreWeave, which provides high-performance computing infrastructure for AI, has secured tens of billions of dollars in contracts with major technology companies. The company has about $50 billion in debt.
Last week, the yield on CoreWeave's notes due 2031 touched almost 16%, while the cost of insuring against the company's debt rose to around 1,000 basis points.
The key risk facing banks is a mismatch between upfront spending on AI infrastructure and revenue received over time, J.P. Morgan said, adding that it expects CoreWeave's free cash flow to remain negative until 2030.
CoreWeave (CRWV -0.44%) has taken center stage in the AI bubble debate.
After venture capital investor Chamath Palihapitiya posted a chart on X last week showing that bond yields on the neocloud operator's debt have risen as high as 15%, CoreWeave shares have spiraled. The stock, the largest of the so-called neocloud companies and posting triple-digit revenue growth, has plunged 24% over the last week and is now trading at its lowest level since shortly after its IPO last March.
Concerns about CoreWeave brought down the broader chip and tech sectors last week, and the stock could continue to serve as an avatar for the broader AI sector as investors debate its future.
Kevin Warsh. Image source: Official Federal Reserve Photo.
Why CoreWeave has become a microcosm of the AI tradeCoreWeave embodies what both AI bulls and bears see in the AI sector. As a neocloud operator, the company's business model is essentially to borrow money to buy GPUs and then rent out the computing power from those GPUs.
It's a straightforward business model, and it's delivered enormous growth since the company pivoted from crypto to AI around 2022. In its second quarter, CoreWeave reported 112% revenue growth to $2.58 billion, showing the surging demand for AI compute. That has pleased AI bulls and explains why the company's market cap jumped to around $100 billion at one point.
However, CoreWeave is also unprofitable and burning a ton of cash. In the second quarter, it had a generally accepted accounting principles (GAAP) operating loss of $49 million and a net loss of $626 million due to $640 million in interest expense.
CoreWeave reported an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profit of $1.51 billion, but that's not the best metric to judge the company on because its business model is highly dependent on capital expenditures and depreciation. Through the first half of the year, the company has had negative free cash flow of $10.5 billion, and it has now accumulated $34 billion and $16 billion in operating lease liabilities.
What's Kevin Warsh got to do with it?Kevin Warsh took over as Fed Chair in May, and he's made one thing clear: He will bring inflation to heal. Warsh has repeatedly observed that inflation has been above the central bank's 2% target for five years, and he plans to use the tools at his disposal to bring it down, including raising interest rates, which the Fed did at its last meeting.
Treasury yields have soared, partly in response to persistent inflation and expectations that the Fed will continue to hike rates, which has made things more difficult for CoreWeave.
CoreWeave has more interest rate exposure than almost any other major publicly traded company, currently spending roughly a quarter of its revenue on debt service. Most of its debt is floating-rate, meaning its interest expense goes up as rates go up, and new debt will cost it more if rates are higher as well.
CRWV CoreWeave$61.12-$0.27 (-0.44%)
NASDAQ · As of 4:00 PM ET 10/19/26
What it means for investorsThere's no question about CoreWeave's demand, as the company reported a revenue backlog of $104 billion at the end of June and added more than $25 billion to it in the third quarter.
However, the company could be forced to slow its expansion if it has trouble paying its debts. In a worst-case scenario, it could even go bankrupt, though that seems unlikely since Nvidia (NVDA +1.38%) is a close partner of the company, and Nvidia has an interest in CoreWeave's success. Nvidia is currently its second-largest investor.
CoreWeave has $10.6 billion coming in debt due by the end of next year, and refinancing that debt will be a major test for the company.
If interest rates continue to go up, CoreWeave's stock is likely to come under more pressure. Keep your eye on treasury yields and Fed commentary in the coming months for further clues into the stock's future. CoreWeave's upcoming earnings report on Nov. 11 could also be pivotal, likely shedding more light on how the company plans to navigate a high-interest rate environment. Whatever happens, investors should expect the volatility to continue.
Higher interest rates are putting pressure on CoreWeave (CRWV -0.44%).
*Stock prices used were the afternoon prices of Oct. 14, 2026. The video was published on Oct. 16, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
CoreWeave lost a quarter of its market value in five days as the cost of insuring its bonds hit a record and yields on its 2032 notes neared 15%. On Monday morning Goldman Sachs upgraded it to buy, while cutting its price target to $106 from $139.
