Business · Markets · 3 hrs ago
CoreWeave shares swing as debt worries clash with AI demand
CoreWeave shares have swung sharply as investors weigh the company’s growth prospects against worries about its debt.
The US cloud-computing company provides computing services used to develop AI and is building data centers to meet demand.
It funds that expansion partly by issuing bonds, and rising bond yields make borrowing more expensive.
This week, its shares plunged and the cost of protecting its bonds against default reached a record intraday level, before the stock rebounded after Nvidia CEO Jensen Huang expressed confidence in the company.
Nvidia is both a CoreWeave shareholder and supplier, and its relationship with the company may offer support as it seeks funding.
Demand for AI computing still exceeds supply, which could help CoreWeave offset higher financing costs, though investors remain cautious.
The stock fell again on Friday and was on track for a weekly loss of more than 20%; no further company action was specified.
CoreWeave shares swung sharply as investors weighed concerns about its debt against strong demand for AI computing services.
The stock fell more than 15% on Wednesday, rebounded on Thursday, then dropped again on Friday.
Rising bond yields and the cost of financing data-center construction have intensified worries about the company’s ability to manage its debt.
Nvidia chief executive Jensen Huang expressed confidence in CoreWeave, while Deutsche Bank called the selloff a buying opportunity.
Reports differed on the size of the weekly decline, putting it at more than 20% or 25%.
- Who
- CoreWeave Inc., a cloud-computing services provider.
- What
- Its shares swung sharply as investors weighed debt concerns against demand for AI computing.
- When
- During the week ending October 16, 2026.
- Where
- In the US stock market.
- Why
- Rising bond yields and concerns about CoreWeave’s debt weighed on shares, while demand for AI computing supported them.
Investors concerned about debt and rising rates
Investors bullish on AI demand and CoreWeave
Debt and financing
Investors concerned about debt and rising rates
Rising bond yields and the cost of funding data-center construction raise concerns about CoreWeave’s debt and default risk.
Investors bullish on AI demand and CoreWeave
Strong customer demand and backlog could support financing needs and the company’s business.
Shares
Investors concerned about debt and rising rates
The selloff reflects significant risks, and it is too early to say the danger has passed.
Investors bullish on AI demand and CoreWeave
Deutsche Bank called the selloff a buying opportunity and urged investors to buy shares.
CoreWeave shares fell more than 15%.
The stock rebounded and ended the day up 5.9% after Jensen Huang expressed confidence in the company.
CoreWeave shares fell again; reports put the decline at as much as 9.4% or 12%.
- Wednesday decline
- More than 15%
- Thursday close
- Shares rose 5.9%
- Friday decline
- Up to 9.4% in Economic Times; 12% in Hankyung
- Weekly decline
- More than 20% in Economic Times; 25% in Bloomberg headline
- Default-risk pricing
- Swaps priced in more than a 60% chance of default within five years
5 sources
위기에 처한 산타 랠리…중간선거 끝나면 상승장 어떻게 [월가 백브리핑]
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What people are saying
The macro backdrop has created a sell-first, ask-questions-later market
While more capital will be needed, this can happen at a steady pace and is backed by robust customer backlog.