CoreWeave’s Big AI Bet Rattles Wall Street Nerves

CoreWeave ( (CRWV) ) has fallen by -12.42%. Read on to learn why.

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CoreWeave shares fell -12.42% over the past week as investors reacted nervously to the AI infrastructure company’s latest guidance and spending plans, despite strong top-line growth. CEO Mike Intrator used a CNBC appearance to defend CoreWeave’s aggressive investment strategy, calling the demand for AI computing a “once-in-a-generation” opportunity and highlighting a massive backlog of orders. Still, the market focused on weaker-than-expected revenue guidance, which triggered a sharp selloff as traders questioned how quickly those future opportunities will translate into profits.

The pressure on the stock deepened after CoreWeave unveiled plans to ramp up capital spending to between $30 billion and $35 billion in 2026, well ahead of Wall Street expectations of about $26.9 billion. The company funds high-end AI chips with borrowed money and then rents out that computing power, a capital-intensive model that has raised fresh concerns about leverage, profitability and concentration risk, given its dependence on a relatively small number of large customers. While Intrator stressed that CoreWeave’s cost of capital has fallen by roughly 300 basis points in the past year, saving about $700 million, investors remain wary that ballooning infrastructure costs could continue to squeeze margins.

Analyst sentiment captures this tension between long-term promise and near-term risk. CoreWeave just reported quarterly revenue of $1.57 billion, more than double last year’s $747 million, but its GAAP net loss widened sharply to $451.7 million from $51.4 million. Wall Street currently rates the stock a Hold overall, with a mix of Buys, Holds and Sells, and some analysts warning that shares could be particularly vulnerable if economic conditions deteriorate. Others remain bullish, with firms like Cantor Fitzgerald and D.A. Davidson reiterating Buy ratings and pointing to sizable upside from current levels, suggesting CoreWeave may stay volatile as investors weigh its ambitious AI build-out against its high-risk financial profile.