News · Yahoo Finance

Coreweave's Shock Absorber Function Will Be Tested Again……and Again

CoreWeave (CRWV) carries a backlog of about $104 billion and second-quarter revenue rose 112.3% to $2.58 billion, but its shares fell 11.91% in the latest session as AI debt fears weighed on the stock. The company raised prices about 25% and guided full-year revenue to $12.4–13.2 billion, yet interest expense rose to $640 million from $267 million and free cash flow was -$5.74 billion. Its 2026 capex is guided to $35–39 billion, and customer concentration in Meta, OpenAI and Microsoft adds pressure. At $61.39, the stock trades near its 52-week low and is down 56.69% over one year, and the article says the key signal to watch is when operating income catches up with interest expense.

Summary written by Upside AI from the original article. Read the source for full details.

Original headline: Coreweave’s Shock Absorber Function Will Be Tested Again……and Again

Read the original on Yahoo Finance ↗

Keywords

CoreWeaveAI investmentNvidiadata centers

Open a keyword to see other news on the same topic.

Related tickers and likely impact

SPY

• Neutral

SPDR S&P 500 ETF

Relevance: low

MarketUS stocks
SectorETF
Close on 10/16/2026763.31
Change that session-1.10%
SPY price, forecasts and signals →

Impact is scored by AI from the headline and may be wrong. It is not investment advice.

Related news

  • Why I am taking the other side of the trade that crushed the market Friday

    The author argues that last week's sell-off, especially Friday's, does not mean the data center and AI 'super-cycle' is over. He suggests the selling may instead reflect unwinding positions and the collapse of a hedge fund that borrowed billions from a firm that has not yet disclosed its losses. He notes that semiconductors fell nine straight days and CoreWeave's corporate bond yields spiked, arguing the bond market is squeezing debt-funded buyers. He defends Nvidia and CEO Jensen Huang, saying Nvidia's funding of AI companies differs from the circa-2000 'vendor finance' that benefited vendors whose customers did not need their products. He believes AI demand is real, citing OpenAI, Anthropic and Google's Gemini, which have monetized AI at scale.

    CNBC·NvidiaAI investmentbonds
  • The next AI race will be won at the credit desk

    In August, Nvidia brought together Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to set up financing platforms that could mobilize over $500 billion for AI infrastructure. The article argues that access to cheap, large-scale capital will increasingly decide who can compete in AI, giving the United States an edge through its deep capital markets. The five largest US hyperscalers are on track to spend $730 billion on capital expenditure in 2026, with up to a third expected to be financed by debt. Nvidia's model aims to turn compute into an asset that pension funds and insurers can own, though the article flags risks such as short-lived GPUs and unpredictable AI demand. It also contrasts Europe's large household savings, which are not yet well channeled into startups, with China, where as much as 80% of newly built computing capacity reportedly sits unused.

    Yahoo Finance·• NVDANvidiaAI investmentcredit
  • Data centers are now the largest financial bet in US history

    The data center buildout totals $10.3 trillion, surpassing the railroad, electrification and dot-com booms, according to a report by Columbia Business School professor Stijn Van Nieuwerburgh. He estimates its economic impact at nearly 4% of GDP, almost twice that of 19th-century railroads. Data center construction value has more than doubled to $85 billion a year, while other construction fell 8%, including a $29 billion drop in new houses and apartments. States such as Nevada are trimming tax breaks, and economist Paul Krugman argues the spending will reduce labor demand in the long run.

    salinapost.com·▲ NVDAdata centersAI investmentNvidia
  • History Says Nvidia Stock Does This in November. Here's the 1 Thing That Could Break the Pattern.

    Nvidia shares have gained 899% over the past five years (as of Oct. 15), and November has been mostly positive this decade, with the only decline coming in November 2025, when the stock fell 13%. Data center revenue rose 117% year over year to $89 billion in fiscal Q2 2027, with hyperscalers contributing about $49 billion. The article argues the key risk to this pattern is hyperscaler capital spending, which depends on the momentum of their cloud businesses. Hyperscaler backlogs have exceeded $2 trillion, and four of the top five will report third-quarter results within two weeks. If cloud growth slows, hyperscalers may cut capex, which would weigh on Nvidia's data center business.

    Yahoo Finance·Nvidiadata centerscloud computing
  • America's $10 trillion AI data centre boom faces delays, rising costs and investor concerns

    Data centre projects in America's $10 trillion AI infrastructure boom are facing delays, cancellations, blocks and weaker investor confidence. RegLayer counted at least 47 large projects delayed, withdrawn or blocked in 2026, while Bernstein estimated only about 35% of the planned US pipeline is credible. More than 1,000 communities have tried to introduce temporary bans or restrictions on AI infrastructure in 2026, and rising borrowing costs threaten financing for neocloud firms. CoreWeave's stock lost almost 25% in a week, and several IPOs, including SoftBank's SB Energy and Nvidia-backed Firmus, were delayed or shelved. Construction delays could let customers cancel: Cipher agreed to cover the first $359 million of cost overruns on a Texas project tied to Anthropic, and Anthropic could cancel its $45 billion Nscale agreement if targets are missed.

    hindustantimes.com·▼ NVDAdata centersAI investmentCoreWeave
  • CoreWeave 15% Bond Yield Is Not a Neocloud Problem. Here's Why I'm Buying Neocloud Stock Dips.

    CoreWeave's bonds maturing in 2032 have seen yields rise to 15%, triggering panic in neocloud stocks and raising the cost of borrowing for its AI infrastructure. The author argues this is a CoreWeave-specific problem: the company leases its data centers rather than owning the land and power, so it faces margin pressure as costs rise, while Nebius and Iren own their facilities and could later borrow against them. CoreWeave's second-quarter revenue more than doubled year over year to $2.58 billion, but it held $5.5 billion in cash against $20.9 billion in total current liabilities and faces $10.6 billion of debt maturing by the end of 2027. Its current ratio of 0.46 compares with 3.08 for Nebius and 3.55 for Iren. The author says he has been buying neocloud stocks and sees Nebius and Iren as better positioned due to stronger balance sheets, cheaper financing options and revenue growth.

    fool.com·CoreWeavebondsdata centers

Related markets

US stocks →

Latest news

  • Intel stock pops after JPMorgan gives a Neutral upgrade

    JPMorgan (JPM) upgraded Intel (INTC) to Neutral from Underweight. The note points to improving execution under CEO Lip-Bu Tan, potential foundry customers for next-generation manufacturing, and rising earnings estimates for 2027 and 2028.

    Yahoo Finance·IntelJPMorgansemiconductors
  • Intel leads chip stocks higher as investors jump back into AI trade

    Chip stocks rebounded on Monday as investors bought the dip after last week's steep AI trade sell-off. The PHLX Semiconductor Index (^SOX) rose 2%, reversing a recent semiconductor rout. Intel (INTC) jumped 5% after JPMorgan upgraded the stock to Buy, citing "solid execution." Nvidia (NVDA) and AMD (AMD) also gained, while a Goldman Sachs upgrade of CoreWeave (CRWV) to Buy from Neutral helped lift AI sentiment. Arm Holdings (ARM), Micron Technology (MU) and SK Hynix (SKHY) also rebounded after sharp declines last week.

    Yahoo Finance·▲ NVDA▲ QQQ▲ SPYNVDAIntelsemiconductors
  • Netflix stock is down roughly 25% in 2026 as Q3 earnings loom

    Netflix (NFLX) reports third-quarter results after the bell on Tuesday, with the stock down more than 25% this year and closing Friday near $70, versus $93.76 at the end of 2025. Investors are worried about slowing viewership, competition from YouTube, and live sports moving to Amazon Prime Video and HBO Max. Last week Netflix cut about 6% of its workforce (roughly 1,000 employees) and named Peter Rice its new chief content officer, and five firms lowered price targets in October. Analysts expect EPS of $0.82 on revenue of $12.88 billion, up about 12% from a year earlier, in line with Netflix's own forecast. KeyBanc's Justin Patterson wants more content investment, product changes, expense cuts and a possible first-ever dividend.

    Yahoo Finance·Netflixearningsstreaming
  • Cleveland-Cliffs Jumps 10% on Strongest Quarter in Three Years; Nucor and Steel Dynamics Edge Higher

    Cleveland-Cliffs (CLF) rose 10% to $13.29 after reporting third-quarter adjusted EBITDA of $612 million, beating its $575 million guidance and up sharply from $143 million a year earlier. Revenue of $5.61 billion missed the $5.72 billion expected, though sales rose 18.6% year over year on a higher average net selling price of $1,177 per ton and larger shipments. Management said imports remain well below historical levels, but it indefinitely idled the galvanizing lines at its Canadian unit Stelco due to oversupply. The company guided to about $715 million of adjusted EBITDA in Q4 and said 2027 adjusted EBITDA should exceed $4 billion based on current index price forecasts. Its target is to bring net debt to EBITDA below 2.5x by mid-2027.

    Yahoo Finance·Cleveland-Cliffssteelearnings
  • Tech rebounds as semiconductor stocks jump: AlphaCheck

    Stocks were mostly higher on Monday as investors turned their focus to earnings season, with semiconductor stocks rebounding after last week's sharp sell-off. The Tech sector (XLK) rose, led by Nvidia (NVDA), AMD (AMD), Micron (MU) and SK Hynix (SKHY). Intel (INTC) also jumped after JPMorgan analysts upgraded the stock, while CoreWeave (CRWV), hammered last week, rebounded on a Goldman Sachs upgrade. Investors are watching this week's reports from Netflix (NFLX), SpaceX (SPCX), Tesla (TSLA) and Meta (META). The 10-year Treasury (^TNX) yield hovered near 5.1%, while Brent crude (BZ=F) dropped to $108 per barrel and WTI (CL=F) hovered below $98.

    Yahoo Finance·▲ NVDA▲ QQQ▲ SPYNVDAsemiconductorstech stocks
  • AI capex may be Meta's biggest earnings test

    Meta Platforms (META) reports third-quarter earnings after the close on Wednesday, alongside a wave of Big Tech peers. The GAAP EPS estimate is $3.54, though that figure may be messy because a legal settlement will be included and analysts differ on how it will be accounted for. Options imply a 3.2% move in either direction, the smallest since the fourth-quarter report before last. Estimates for next year's capex vary widely: Wedbush near $250 billion, Evercore ISI $210 billion, Bank of America $205 billion and Dan Ives around $194 billion. Most analysts say that spending is acceptable if Meta provides a Muse roadmap and confidence it can monetize it, and the stock is up about seven and a half percent year to date.

    Yahoo Finance·• META▲ NVDAMETAearningscapital expenditure

All news →

Get the briefing on Telegram or Zalo

Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.