CoreWeave Shares Plummet 61% Amid Debt Concerns and Operational Delays
CoreWeave's stock has nosedived 61% from its mid-year peak of $187, with a 39% drop in the last quarter alone. The AI infrastructure provider faces mounting skepticism about its ability to recover by 2026, as investors grapple with high-interest debt reliance and project setbacks.
A botched $9 billion merger with Core Scientific—OpenAI's data center partner—exacerbated the selloff, compounded by construction delays at the Denton facility due to extreme weather. Short-seller Jim Chanos' critiques further eroded confidence in the company's Leveraged Nvidia GPU purchases and concentrated revenue stream from tech giants like Microsoft and Meta.
The capital expenditure trajectory now outpaces revenue growth, fueling broader concerns about AI sector froth. When Core Scientific shareholders rejected the acquisition in late October, it underscored deepening market unease about CoreWeave's financial sustainability.
