Investors are demanding more protection against a potential CoreWeave default. CoreWeave generated negative $5.7 billion in free cash flow last quarter.
Shares of CoreWeave Inc. (Nasdaq: CRWV) have fallen more than 25% in the last week as concerns grow over the company's debt and the success of the “neocloud” industry as a whole.
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Signs of distressed deepened in CoreWeave on Thursday. Yields on its 2031 bonds topped 15%.
CoreWeave (NASDAQ:CRWV), the artificial intelligence cloud computing provider, shares fell 3% on Thursday as financing concerns hit AI infrastructure stocks, despite Bank of America raising its revenue growth forecasts. Bank of America reiterated its 'buy' rating and $140 price target on Thursday, arguing that CoreWeave's ability to bring computing capacity online at scale gives it a competitive advantage.
It's getting more expensive for investors to buy protection against a CoreWeave default.
On September 30, 2026, CoreWeave (NASDAQ:CRWV) chief executive Michael Intrator went on CNBC and said data center regulations would not hurt AI demand and that margins were higher than a year ago.
CoreWeave (NASDAQ:CRWV) stock is bearing the brunt of the AI-driven selloff today, with Mizuho trimming its price target to $88 from $115 on mounting debt and funding concerns.
This article was written by Doug Nathman, with research by his team at Trefis.
CoreWeave shares are tumbling as rising bond yields underscore worries about AI debt.
CoreWeave shares CRWV and bonds came under heavy pressure on Wednesday as investors grew increasingly concerned about the scale of borrowing by technology companies to finance the artificial intelligence infrastructure build-out. Shares of the AI-focused cloud computing provider plunged 16%, while yields on its outstanding debt surged, reflecting a growing demand for compensation for the risks associated with financing the sector.