CoreWeave Stock Plunges Despite Record Backlog as Data Center Delays Dampen AI Infrastructure Growth
11 Sources
[1]
Once-hot cloud AI play CoreWeave is tanking. A JPMorgan downgrade is adding to the pressure
Near-term supply chain pressures will cap gains for CoreWeave , according to JPMorgan. The bank downgraded CoreWeave, which provides infrastructure for artificial intelligence firms, to neutral from overweight. Analyst Mark Murphy also lowered his price target to $110 per share from $135, signaling
[2]
CoreWeave shares sink as weak outlook offsets big AI deals
CoreWeave shares plunged on Tuesday after it posted lower-than-expected full-year guidance, overshadowing strong third-quarter results and a string of new artificial intelligence partnerships. The New Jersey-based AI infrastructure firm reported revenue of $1.36 billion for the quarter, beating
[3]
CoreWeave earnings: Data-center operator posts $56 billion in contracted future revenue, but revenue guidance drops | Fortune
CoreWeave needed a lot of things to go right on Monday as it released third-quarter financial results, and one of the most critical was showing that its contracted future revenues could hit a $50 billion target Wall Street had set as a benchmark for the AI data-center and infrastructure
[4]
CoreWeave's stock wavers on data center delay and lower revenue forecast - SiliconANGLE
CoreWeave's stock wavers on data center delay and lower revenue forecast Artificial intelligence compute infrastructure company CoreWeave Inc. delivered better than expected financial results today, but its stock lost ground after-hours when it revealed a tepid revenue forecast and said one of its
[5]
Jim Cramer Grills CoreWeave CEO Over Data Center Delays Despite $55.6 Billion Backlog - CoreWeave (NASDAQ:CRWV)
CoreWeave Inc. (NASDAQ:CRWV) CEO Michael Intrator was questioned by CNBC's Jim Cramer on Tuesday regarding data center delays that have impacted the company's stock, despite reporting a massive $55.6 billion backlog. Cramer Questions CORZ's Role In CRWV's Data Center Delay The tense "Squawk on
[6]
CoreWeave Is 'Undervalued' Despite Supply Delay: Analyst - CoreWeave (NASDAQ:CRWV)
CoreWeave Inc (NASDAQ:CRWV) faces a short-term setback after cutting its fiscal 2025 revenue outlook due to supply constraints, though demand for its artificial intelligence infrastructure remains strong, with backlog up 50% quarter-over-quarter. Despite a temporary slowdown from construction
[7]
CoreWeave Bulls In For 'Wild, Lumpy, Volatile Ride': JPMorgan - CoreWeave (NASDAQ:CRWV)
CoreWeave Inc. (NASDAQ:CRWV) is still one of the brightest stars in the AI infrastructure galaxy -- but JPMorgan says the flight path just got turbulent. Analyst Mark R. Murphy trimmed his rating to Neutral with a $110 price target (from $135), warning that while CoreWeave's long-term opportunity
[8]
Investor Outlook: CoreWeave shares slide as analyst warns data centre delays could destroy value
Shares of CoreWeave are under pressure after the AI cloud-computing firm issued full-year guidance below Wall Street expectations. The company's struggles to expand its data centre capacity have raised doubts about its ability to sustain rapid growth. BNN Bloomberg spoke with Gil Luria, head of
[9]
CoreWeave stock falls after The Verge labels it "heart of AI bubble" By Investing.com
Investing.com -- CoreWeave shares dropped 6% Thursday following a report from The Verge that characterized the company as being at "the heart of the AI bubble," raising questions about its business model and dependence on Nvidia. The tech publication previewed an upcoming investigative story that
[10]
Compass Point initiates CoreWeave stock with Buy rating, $150 price target By Investing.com
Investing.com - CoreWeave (NASDAQ:CRWV) received its first analyst coverage on Thursday as Compass Point initiated the AI infrastructure company with a Buy rating and a $150.00 price target. The stock currently trades at $85.43, with analyst targets ranging from $36 to $234, according to
[11]
CoreWeave beats third-quarter revenue estimates on AI computing boom
(Reuters) -AI cloud provider CoreWeave beat Wall Street estimates for third-quarter revenue on Monday, benefiting from surging demand for its computing infrastructure that powers artificial intelligence workloads. CoreWeave has cemented its position as a key infrastructure partner for the biggest
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AI infrastructure provider CoreWeave faces investor pressure after lowering 2025 revenue guidance due to data center construction delays, despite reporting a massive $55.6 billion revenue backlog and strong Q3 results.
Stock Performance Takes Hit Despite Strong Fundamentals
CoreWeave shares experienced significant volatility following the company's third-quarter earnings release, with the stock falling as much as 16% on Tuesday despite reporting better-than-expected quarterly results
1
. The AI infrastructure provider's stock closed at $88.39, though it has still gained over 120% since going public in March5
.
Source: Market Screener
The market reaction was primarily driven by CoreWeave's revised 2025 revenue guidance of $5.05 billion to $5.15 billion, falling short of analysts' expectations of $5.29 billion
2
. JPMorgan analyst Mark Murphy downgraded the stock from overweight to neutral, lowering his price target to $110 from $135, citing near-term supply chain pressures as a key concern1
.Record Revenue Backlog Signals Strong Demand
Despite the guidance disappointment, CoreWeave demonstrated robust underlying demand for its AI infrastructure services. The company reported a massive $55.6 billion revenue backlog, nearly doubling from $30 billion in the previous quarter
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. This surge was driven by major contract expansions, including a $6.5 billion deal expansion with OpenAI, a six-year agreement with Meta worth up to $14.2 billion, and a $6.3 billion contract with Nvidia2
.CEO Michael Intrator emphasized the company's strong market position, stating that CoreWeave's "position as the essential cloud for AI has never been stronger"
4
. The company also increased its power under contract to 2.9 gigawatts, up from 2.2 gigawatts three months earlier4
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Source: SiliconANGLE
Data Center Delays Create Near-Term Headwinds
The primary concern weighing on investor sentiment stems from construction delays at third-party data center facilities. Intrator explained that the company is experiencing delays with one specific data center developer, though he emphasized this represents just one facility out of 41 in CoreWeave's portfolio
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. The CEO assured investors that these delays wouldn't affect the company's backlog, as affected customers have agreed to adjust delivery schedules while maintaining original contract values4
.The supply chain challenges reflect broader industry pressures affecting data center development. Intrator noted that the company remains constrained by the availability of "powered-shell" data centers, which are partially completed facilities requiring CoreWeave to install its own equipment
2
. However, he expressed optimism that most delays would be resolved by the first quarter of next year.Related Stories
Financial Performance Shows Mixed Results
CoreWeave's third-quarter financial results presented a mixed picture. The company reported revenue of $1.36 billion, representing 134% year-over-year growth and beating analyst estimates of $1.29 billion
2
. The company's net loss narrowed significantly to $110 million from $360 million in the prior year period2
.However, the company's debt position has grown substantially, with total debt reaching $14 billion compared to $11 billion in the previous quarter
3
. Interest expenses nearly tripled to $311 million from $104 million year-over-year, reflecting the company's significant capital requirements for data center expansion3
.Analyst Scrutiny and Market Skepticism
The earnings release intensified scrutiny from analysts and investors questioning the sustainability of AI infrastructure investments. During a tense CNBC interview, Jim Cramer grilled CEO Intrator about the data center delays, specifically calling out the company's relationship with Core Scientific, which Cramer described as a "failed Bitcoin miner that came out of bankruptcy"
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.Some investors view CoreWeave as a potential indicator of weakness in the broader AI infrastructure buildout, contributing to the stock's 30% decline from mid-August highs
3
. Despite these concerns, the company maintains ambitious expansion plans, with CFO Nitin Agrawal projecting 2026 capital expenditures to be "well in excess of double" the current year's $12-14 billion forecast3
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Source: Quartz
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