CoreWeave (CRWV) shares plunged more than 60% since June, raising concerns about a potential oversupply in AI infrastructure.
The company faces data center delays, heavy reliance on debt to purchase NVIDIA chips, and revenue concentration in clients such as OpenAI, Microsoft, and Meta.
The collapse of the $9 billion Core Scientific acquisition and construction issues caused by rains in Texas highlight the fragility of the company’s expansion. Oracle and Broadcom shares fell in double digits after reporting lower AI spending.
Bitcoin miners that pivoted to high-performance AI workloads, such as IREN and Cipher Mining, suffered 50% declines after gains exceeding 500% this year, while the sector increasingly relies on debt to fund growth. CoreWeave closed below $70, its lowest level since May, reflecting the market’s vulnerability.
Source: https://www.wsj.com/tech/ai/coreweave-stock-market-ai-bubble-a3c8c321
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