CoreWeave shares plunge 13% as $35 billion AI spending plan triggers investor concerns

CoreWeave Reports Wider Loss in Sign of Heavy Spending

CoreWeave Inc. fell as much as 13% in late trading after reporting a bigger-than-expected loss and boosting capital expenditures, spurring concerns about the company overspending on infrastructure. The loss widened to 89 cents a share in the fourth quarter, the company said in a statementBloomberg Terminal Thursday. Analysts had estimated about 72 cents on average, according to data compiled by Bloomberg. Revenue rose to $1.57 billion, compared with a $1.55 billion prediction. The company, an operator of AI data centers, also said that 2026 capital spending will be $30 billion to $35 billion -- a bigger figure than analysts anticipated. CoreWeave, part of a group of companies known as neoclouds, rents out access to powerful chips and computing resources. Demand has surged for its services, and the company boasts contracts with clients such as OpenAI, Meta Platforms Inc. and Microsoft Corp. But expanding its capacity is costly -- and there have been some hiccups. In November, the company lowered its annual revenue forecast due to a delay in fulfilling a customer contract. CoreWeave has been taking on more debt to fund projects. The shares fell as low as $84.64 in extended trading after the report was published. The stock had been up 36% this year, closing at $97.63. Sales will be $12 billion to $13 billion this year, CoreWeave said, with roughly $2 billion coming in the first quarter. Analysts had predicted 2026 revenue of $12.1 billion and first-quarter sales of $2.24 billion. Adjusted operating income will range from the break-even point to $40 million, the company said. CoreWeave, which held its initial public offering in March 2025, has attracted investors looking to bet on the explosion in artificial intelligence spending. The Livingston, New Jersey-based company is a close partner of Nvidia Corp., the leading maker of AI chips. Nvidia invested an additional $2 billion in CoreWeave last month, aiming to speed up an effort to add more than 5 gigawatts' worth of AI computing capacity by 2030. As part of the collaboration, CoreWeave will be among the first to deploy forthcoming Nvidia products. The company has also been adding to its debt load and is looking to raise about $8.5 billion from banks including Morgan Stanley and Mitsubishi UFJ Financial Group Inc. to help finance a build-out of cloud computing capacity for Meta, people familiar with the matter said earlier this week. CoreWeave has dramatically ramped up borrowing in recent years, joining an industrywide debt binge that has unsettled some investors. The company's adjusted leverage, a measure of debt to earnings, stood at about 6.9 times as of Sept. 30, and it's expected to burn cash for at least the next 18 months amid heavy capital expenditures, according to a recent Moody's Ratings report.

CoreWeave shares slump as doubling capital expenditure sparks margin concerns

Feb 27 (Reuters) - Shares of CoreWeave (CRWV.O), opens new tab slumped around 12% before the bell on Friday, after the company's plans to double capital expenditure this year fueled investor concerns about margin pressure and effective returns from its artificial intelligence push. The cloud infrastructure company has committed significant capital toward the construction of large data centers filled with top-of-the line Nvidia (NVDA.O), opens new tab chips to capitalize on the booming demand for AI services. CoreWeave has budgeted $30 billion to $35 billion in capital expenditure this year, more than double the $14.9 billion it spent in 2025. The increased spending will put some "short-term pressure on the margins," the company said. The company's ballooning spending mirrors that of hyperscale cloud providers such as Alphabet's (GOOGL.O), opens new tab Google and Amazon (AMZN.O), opens new tab, which have collectively committed more than $600 billion this year for AI infrastructure buildouts. Unlike Big Tech companies that are cushioned by massive cash reserves, neoclouds like CoreWeave and peer Nebius (NBIS.O), opens new tab are more exposed to significant market downturns due to their business models. CoreWeave had $3.13 billion in cash and its equivalents, compared with Microsoft's $24.3 billion and Amazon's $86.8 billion, according to their most recent earnings reports. Amsterdam-based Nebius (NBIS.O), opens new tab earlier this month reported a sharp rise in capital spending to $2.1 billion in the December quarter from just $416 million in the prior year period. Neoclouds offer hardware and cloud capacity as services to other tech firms, usually by providing access to high-quality processors and cloud infrastructure. Moreover, a rush to build out data centers could put pressure on chip availability. Any disruption to the supply could hamper CoreWeave's infrastructure plans and leave it with a revenue backlog it cannot fulfill. Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab

CoreWeave beats revenue projections as backlog swells to nearly $67 billion

Michael Intrator, Chief Executive Officer of CoreWeave Inc., speaks during an interview with CNBC on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Sept. 22, 2025. CoreWeave shares fell as much as 7% in extended trading on Thursday after the artificial intelligence-focused cloud infrastructure provider posted higher fourth-quarter revenue than Wall Street had expected. Here's how the company did in comparison with LSEG consensus: CoreWeave's revenue grew 110% year over year in the quarter, according to a statement. It had 850 megawatts in active power capacity, while contracted power stood at 3.1 gigawatts at the end of the year. Analysts polled by LSEG had been projecting about 827 megawatts in active power. The company said its revenue backlog swelled to $66.8 billion from $55.6 billion at the end of the third quarter. CoreWeave's 2026 capital expenditures totaled $10.31 billion, below Visible Alpha's $12.90 billion consensus. The company reported $21.37 billion in debt as of Dec. 31. AI has become a greater concern for software investors in recent weeks, with announcements from Anthropic leading to sharp selling. CoreWeave supplies AI model makers such as Google and OpenAI, and its stock was up 36% so far in 2026 as of Thursday's close, while the iShares Expanded Tech-Software Sector Exchange-Traded Fund is down nearly 22% in the same period. During the quarter, CoreWeave announced a deal with model builder Poolside and introduced an object storage service. The company also said it increased a credit facility to $2.5 billion from $1.5 billion. CoreWeave continues to be a specialist in cloud infrastructure, although the storage launch will help it compete with larger entities, such as Amazon Web Services. Executives will hold a conference call to discuss the results and issue guidance starting at 5 p.m. ET.

CoreWeave's stock drops on mixed results and plans to scale up AI spending - SiliconANGLE

CoreWeave's stock drops on mixed results and plans to scale up AI spending Shares of the cloud infrastructure company CoreWeave Inc. fell more than 9% in late trading today after it posted a bigger-than-expected loss per share and offered a weak revenue forecast for the current quarter. The company, which is laser-focused on the artificial intelligence industry, reported a fourth-quarter adjusted loss per share of 56 cents, bigger than Wall Street's consensus estimate of a 50 cent per share loss. It did at least surpass expectations on revenue. Sales rose 110% compared to the same quarter last year, generating $1.57 billion in revenue, above the $1.55 billion expected. The results meant CoreWeave's overall net loss widened significantly to $452 million at the end of the quarter, compared to a net loss of just $51 million a year earlier. CoreWeave operates dozens of data centers that are primarily equipped with Nvidia's GPUs. It rents those chips out to enterprise customers and AI models developers looking for computing power to train and run powerful large language models, which consume vast resources. The company is considered to be one of the top "neoclouds," which compete with established public cloud infrastructure providers such as Amazon Web Services Inc. and Microsoft Azure. With regards to guidance, the full-year forecast doesn't look too bad. The company is guiding for fiscal 2026 revenue of between $12 billion and $13 billion, which is better than the Street's consensus of $12.09 billion. However, it's not nearly as bullish in the near term. For the first quarter, CoreWeave anticipates sales of between $1.9 billion and $2 billion, well below the Street's $2.29 billion target. On a conference call with analysts, CoreWeave Chief Executive Michael Intrator (pictured) said Nvidia GPUs remain in short supply, putting upwards pressure on prices. However, he said prices of Nvidia's older H100 processors in the fourth quarter were within 10% of where they started the year, though the cost of its A100 prices had increased significantly during that time. The company said it's planning to increase its capital expenditures to between $30 billion and $35 billion in fiscal 2026, up from just $10.31 billion in the previous year. That investment is necessary to fuel its ambitious data center buildout so it can meet the surging demand for AI compute, Intrator told analysts. "We are virtually sold out in 2026 of all of our capacity and then continuing to add contracts that will be allocated once they come online in 2027," he said. CoreWeave ended the fiscal year with 850 megawatts of active power capacity, while its contracted power stood at 3.1 gigawatts. That suggests its buildout is currently ahead of schedule, as analysts had projected it to have around 827 megawatts in active power. It's hopeful of bringing a total of 1.7 gigawatts of active power online by the end of 2026, and ultimately plans to add over five gigawatts beyond its contracted footprint by 2030, Intrator said. "We are seeing the proliferation of demand across the economy going from where it was initially housed within the hyperscaler clouds and the foundation models, and exploding into the enterprise," Intrator said. "You're seeing it move into sovereign. You're seeing all these new participants beginning to come in and start securing the infrastructure that they need." CoreWeave's revenue backlog swelled to $66.8 billion at the end of the quarter, up from $55.6 billion three months prior. Meanwhile, its reported debt stood at $21.37 billion at the end of the quarter. Despite today's drop, CoreWeave's stock remains one of Wall Street's best performers so far this year, having gained more than 36%. In contrast, the S&P 500 is up just 1% over the same time frame, while the tech-heavy Nasdaq index has declined more than 1% so far this year. The iShares Expanded Tech-Software Sector Exchange-Traded Fund is down almost 22% in the year to date, due to the pounding taken by shares of software companies in recent weeks. During the quarter, CoreWeave announced the launch of a new object storage service to help customers scale their AI workloads in a move that suggests it could be expanding its horizons beyond just compute infrastructure.

CoreWeave: What's Going On With The Stock Today? - CoreWeave (NASDAQ:CRWV)

CoreWeave Inc. (NASDAQ:CRWV) shares fell in premarket trading Friday after the AI cloud provider issued lighter-than-expected first-quarter revenue guidance. CoreWeave shares are trending. Where are CRWV shares going? The company posted fourth-quarter revenue of $1.57 billion, narrowly topping Wall Street's $1.55 billion projection, but its near-term outlook disappointed investors. Needham analyst Mike Cikos reiterated a Hold rating on the stock. CoreWeave Guidance Trails ExpectationsHeavy Investment Cycle Agrawal said the company expanded its revolving credit facility to $2.5 billion. CoreWeave secured more than $18 billion in debt and equity financing during 2025. The company also announced a $2 billion investment from Nvidia Corp. (NASDAQ:NVDA) tied to an expanded commercial partnership. Agrawal said the company lowered its weighted average interest rate by 300 basis points in 2025. He added that the reduction represents nearly $700 million in annualized interest savings. CoreWeave faces no major debt maturities until 2029, excluding amortizing contract-backed obligations. CapEx Surge And Capacity Growth The company plans capital expenditures between $30 billion and $35 billion in 2026. That spending more than doubles 2025 investment levels. Management expects active power capacity to exceed 1.7 gigawatts by year-end, up from 850 megawatts across 43 data centers. CoreWeave reported a contracted revenue backlog of $66.8 billion entering 2026. Agrawal said, "Contracted customer demand, deep strategic partnerships, active infrastructure deployment, industry-leading capabilities, and a thoughtful approach to capital markets give us the confidence to put these numbers forward." The company expects to exit 2026 with annualized run-rate revenue between $17 billion and $19 billion. It projects that the figure will surpass $30 billion by the end of 2027. CRWV Price Action: CoreWeave shares are trading lower by about 18% to $80.12 at last check on Friday. Image: Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

The Neocloud Revolution Is Here. This AI Stock Went From Zero to $5 Billion in Revenue in 3 Years. | The Motley Fool

This scorching hot company also has an 11-figure revenue backlog. "Neocloud" is one of those buzzy tech industry words that not every investor is aware of. That's a shame, because the technology -- cloud computing services that are focused chiefly on artificial intelligence (AI) -- has enormous potential, to say the least. And within the still-limited neocloud space, one enterprise that's helping to lead the march forward is CoreWeave (CRWV 2.35%). Its rise has been fast and impressive; here's a look at whether it still has room to run. Underneath all the sophisticated, whiz-bang technology that CoreWeave leverages, its business strategy is refreshingly straightforward. The company operates a network of "AI factories." These are leased or owned data centers that are mainly packed with the state-of-the-art AI processors and integrated clusters of its business partner (and investor, and customer), Nvidia. This hardware makes up the brains that can handle resource-intensive AI functions, and CoreWeave leases out that computing capacity to clients. One healthy sign of a thriving tech business is its use by major companies in the sector -- and CoreWeave absolutely checks that box. It has a relatively long relationship supplying such computing power to Microsoft for that company's Azure AI and for ChatGPT developer OpenAI (a beneficiary of considerable investments from Microsoft). In the social media sphere, Facebook and Instagram owner Meta Platforms signed a deal to use the Nvidia GB300 systems in CoreWeave's AI factories to help forge -- sorry, develop -- its own Llama AI platform. This arrangement, by the way, is quite the long-term money spinner all on its own. It's worth more than $14 billion, and it will be in force through 2031. CoreWeave's services are hot, and their temperature will keep rising. That thermostat was turned up quickly: The company's 2022 revenue was a skinny $16 million, but a mere two years later, that number had ballooned to over $1.9 billion. The fourth-quarter and full-year 2025 results will come out on Thursday after the closing bell, and the consensus analyst revenue estimate for the latter tops $5 billion. The world wants CoreWeave to build out its capacity as much and as soon as possible, but doing so takes time and capital. One result of this is that the company has a rapidly growing revenue backlog; it skyrocketed by 271% year over year in the third quarter to more than $55 billion. The company has yet to post a net profit; however, this is hardly a deal-breaker for the stock's many bulls. It's common in the tech industry for a business to invest significant capital to build scale and establish a strong revenue base. When and if that's done sufficiently, such businesses can start to flip those bottom-line numbers into the black, hopefully at high margins. So, I wouldn't say CoreWeave's losses are worrying, at least not yet. In fact, they're fairly modest given the sharp upward trajectory of its revenue. And the company's third-quarter deficit of $110 million was its lowest across the past five quarters (the deepest being $360 million in Q3 2024). Meanwhile, across that stretch of time, its revenue climbed from $584 million to nearly $1.4 billion. None of this is to say that CoreWeave has had no setbacks or concerns. Last week, an article published by Business Insider stated that one of its creditors, business development company Blue Owl Capital, was apparently struggling to syndicate debt to fund a CoreWeave data center in Pennsylvania. Since data centers are front and center in the company's business, that was hardly an encouraging development. Speaking of debt, CoreWeave sure is amassing a lot of it. Its long-term borrowings are rising more quickly than revenue, piling up almost threefold over the one-year stretch between the third quarters of 2024 and 2025 to more than $14.7 billion. As with any growing stack of loans, that debt threatens to become a serious drag on the company's fundamentals. Still, this is a business that -- more than many -- is in the right place at the right time in the history of technology. I doubt the mania for everything AI will subside soon, and CoreWeave is already a go-to choice for smart information technology managers to secure the processing power they need. CEO Michael Intrator insisted its Pennsylvania facility is fully funded, and I'd say the company's debt pile is manageable (at least for now). This is a fine stock for the dawn of the neocloud age. Since CoreWeave is still a relatively young company, it will be important for investors considering buying its shares to digest all updates regarding the developments and factors covered above. Management is slated to publish its final set of 2025 results on Thursday after the close of trading.

CoreWeave Posts Q4 Revenue Beat, Guides To 140% Growth In 2026 - CoreWeave (NASDAQ:CRWV)

Shares of CoreWeave Inc (NASDAQ:CRWV) tanked in early trading on Friday, after the company reported mixed fourth-quarter results. Here are the key analyst insights: Check out other analyst stock ratings. DA Davidson: CoreWeave reported total revenue of $1.6 billion, representing 110% year-on-year growth, Platt said in a note. The company's revenue backlog grew to $66.8 billion, mainly due to an additional contract from Meta Platforms Inc (NASDAQ:META) valued around $5 billon, he added. CoreWeave reported strong earnings, driven by "continued strong demand for AI compute," the analyst wrote. Management guided to full-year revenues of $12B-$13 billion, implying 140% growth at the midpoint, he further stated. Cantor Fitzgerald: CoreWeave's backlogs grew more than 400% in the fourth quarter, up $11.2 billion sequentially and more than $50 billion year-on-year, Blakey said. The company exited 2025 with backlogs of $66.8 billion, providing strong visibility into the company's guidance for the second half of 2026 and 2027, he added. Needham: CoreWeave reported revenue of $1.57 billion, topping consensus of $1.55 billion, Cikos said. He added, however, that the company's operating profit of $88 million fell short of market expectations of $133 million. Management projected capex to grow to $30-$35 billion, up more than 100% from $14.8 billion in 2025, the analyst stated. "We remain Hold-rated as we expect CoreWeave to continue prioritizing CapEx spend, cutting into profitability, and muddying the evaluation of underlying unit economics," he further wrote. CRWV Price Action: Shares of CoreWeave had declined by 17.9% to $80.04 at the time of publication on Friday. Image: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

CoreWeave shares slump as doubling capital expenditure sparks margin concerns

Feb 27 (Reuters) - Shares of CoreWeave slumped around 12% before the bell on Friday, after the company's plans to double capital expenditure this year fueled investor concerns about margin pressure and effective returns from its artificial intelligence push. The cloud infrastructure company has committed significant capital toward the construction of large data centers filled with top-of-the line Nvidia chips to capitalize on the booming demand for AI services. CoreWeave has budgeted $30 billion to $35 billion in capital expenditure this year, more than double the $14.9 billion it spent in 2025. The increased spending will put some "short-term pressure on the margins," the company said. The company's ballooning spending mirrors that of hyperscale cloud providers such as Alphabet's Google and Amazon , which have collectively committed more than $600 billion this year for AI infrastructure buildouts. Unlike Big Tech companies that are cushioned by massive cash reserves, neoclouds like CoreWeave and peer Nebius are more exposed to significant market downturns due to their business models. CoreWeave had $3.13 billion in cash and its equivalents, compared with Microsoft's $24.3 billion and Amazon's $86.8 billion, according to their most recent earnings reports. Amsterdam-based Nebius earlier this month reported a sharp rise in capital spending to $2.1 billion in the December quarter from just $416 million in the prior year period. Neoclouds offer hardware and cloud capacity as services to other tech firms, usually by providing access to high-quality processors and cloud infrastructure. Moreover, a rush to build out data centers could put pressure on chip availability. Any disruption to the supply could hamper CoreWeave's infrastructure plans and leave it with a revenue backlog it cannot fulfill. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo)

CoreWeave CFO says co expects 2026 revenue of $12 bln to $13 bln

CoreWeave, Inc. is an American technology company founded in 2017, specializing in cloud infrastructure designed for compute-intensive workloads. It has positioned itself as a niche player in a market dominated by generalist giants. Its offering is built on a vertical specialization in artificial intelligence (AI) and related applications, notably high-performance computing (HPC) and graphical rendering. CoreWeave operates a GPU-first architecture, optimized for training and inference of generative AI models. It also targets scientific and financial computing, as well as real-time 3D rendering needs. With its own data centers located in the United States and Europe, the company maintains full control over its infrastructure. This control enables it to deliver high performance, low latency, and flexible deployment capabilities. Some facilities are shared among clients, while others are fully dedicated to a single customer. CoreWeave serves a diverse clientele, ranging from AI startups to research labs, as well as production studios and financial institutions. In addition to its hardware infrastructure, the company develops its own GPU management software. These tools enable intelligent resource allocation, continuous performance optimization, and better cost control. This vertical integration, from hardware to software, enhances the company's competitiveness. CoreWeave stands out through its tailored approach and its ability to meet clients' specific needs. It aims to become the leading provider for AI workloads on a global scale. In a context of surging demand for computing power, its model is appealing due to its specialization and agility.

CoreWeave CFO says co secured more than $18 billion of debt and equity in 2025

CoreWeave, Inc. is an American technology company founded in 2017, specializing in cloud infrastructure designed for compute-intensive workloads. It has positioned itself as a niche player in a market dominated by generalist giants. Its offering is built on a vertical specialization in artificial intelligence (AI) and related applications, notably high-performance computing (HPC) and graphical rendering. CoreWeave operates a GPU-first architecture, optimized for training and inference of generative AI models. It also targets scientific and financial computing, as well as real-time 3D rendering needs. With its own data centers located in the United States and Europe, the company maintains full control over its infrastructure. This control enables it to deliver high performance, low latency, and flexible deployment capabilities. Some facilities are shared among clients, while others are fully dedicated to a single customer. CoreWeave serves a diverse clientele, ranging from AI startups to research labs, as well as production studios and financial institutions. In addition to its hardware infrastructure, the company develops its own GPU management software. These tools enable intelligent resource allocation, continuous performance optimization, and better cost control. This vertical integration, from hardware to software, enhances the company's competitiveness. CoreWeave stands out through its tailored approach and its ability to meet clients' specific needs. It aims to become the leading provider for AI workloads on a global scale. In a context of surging demand for computing power, its model is appealing due to its specialization and agility.