CoreWeave (Nasdaq: CRWV) shares lost about 25% of their value last week, marking their worst weekly stretch since November 2025. The selloff came amid renewed concern over how much debt the A
CoreWeave (Nasdaq: CRWV) shares lost about 25% of their value last week, marking their worst weekly stretch since November 2025.
The selloff came amid renewed concern over how much debt the AI cloud company is taking on to build data centers. Those fears also spread across other AI infrastructure stocks as investors questioned whether the spending boom can generate enough returns to justify the borrowing.
Now, one of Wall Street’s biggest banks has changed its view on CoreWeave.
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CoreWeave is a neocloud, renting GPU computing power to companies building and running AI models.
The company started in 2017 as Atlantic Crypto, founded by three former commodities traders who used Nvidia GPUs to mine Ethereum. After the 2018 crypto crash, it renamed itself CoreWeave and built a specialist cloud business around those chips. The company went public in March 2025 at $40 per share.
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That expansion has required enormous amounts of capital.
CoreWeave has around $50 billion of debt, according to Reuters, while its revenue backlog stood at about $104 billion at the end of the second quarter.
Its bonds came under heavy pressure last week, with some yields moving above 15% as investors demanded more compensation for lending to the company.
Nvidia CEO Jensen Huang defended the company on Oct. 15, saying “CoreWeave’s strength is improving every day” and that its cost of capital was decreasing. He also said CoreWeave did not need a financial backstop from Nvidia.
@davidfaber Yep, Coreweave flat is what i feareed
— Jim Cramer (@jimcramer) October 19, 2026
Nvidia nevertheless has deep ties to CoreWeave. A 2025 agreement requires Nvidia to purchase certain unsold CoreWeave computing capacity through April 2032, with an initial value of $6.3 billion.
Goldman Sachs analyst Gabriela Borges upgraded CoreWeave on Monday from Neutral to Buy, while cutting her price target to $106 from $139.
That target implied roughly 73% upside from Friday’s close.
“Not all neoclouds are created equal, and we view CoreWeave as being toward the top of the quality rankings in the ecosystem,” Borges wrote.
Goldman said much of CoreWeave’s debt is backed by assets such as its GPUs, which still have resale value. Borges expects its blended cost of debt to rise by roughly 100 to 200 basis points, but sees limited further deterioration from there.
She also argued that returns generated per megawatt of power could surprise to the upside over the next two years, though AI demand and future GPU values remain difficult to predict.
CoreWeave’s Aug. 11 earnings showed revenue of $2.58 billion, up from $1.21 billion a year earlier, alongside a $626 million net loss and a $104 billion backlog.
The stock has fallen about 43% since that report, suggesting the bigger concern has become financing rather than demand.
CoreWeave was trading around $63 as of 10:53 a.m. ET Monday, up about 3% on the day.
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