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CoreWeavecloud computingdata centersartificial intelligence
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Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/23/2026 | 210.96 |
| Change that session | -0.59% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- What Could Go Wrong At CoreWeave From Here?
CoreWeave shares (CRWV) have fallen 55.4% over the past year, while the S&P 500 returned 15.1%. AI cloud platform revenue reached $7.59 billion over the twelve months to June 30, 2026, up 115.3%, and backlog stood at $104.2 billion, up 246%. The main risk is local pushback against new data centers, with some communities adopting moratoriums on new building, as the company had 1.5 gigawatts of active power at the end of fiscal Q2 2026 against a goal of at least 8 gigawatts by 2030. Management said regulatory pushback will not affect its guided numbers and raised its end-2026 active power goal to more than 1.85 gigawatts from more than 1.7 gigawatts. The article calls the threat real but slow, with active power in the November 2026 report as the key measure to watch.
- Neocloud stocks fall as Elon Musk says more than 200 of them face 'guppy-level death'
Shares of Nebius, CoreWeave and Iren fell more than 4% in premarket trading after Elon Musk said on X that more than 200 companies in the sector could collapse. Musk said debt markets have almost entirely shut off funding for firms without substantial revenue independent of AI data centers, and that the 200+ neoclouds face "guppy-level death and consolidation." He was replying to Chamath Palihapitiya, who warned of partially stranded compute in 2027. Over the past month, CoreWeave and Nebius have fallen more than 30% and Iren has tanked 40%, after the spread on CoreWeave's five-year credit default swaps reached levels generally viewed as signs of distress.
- CRWV Stock Warning: Why Bernstein Says CoreWeave Shares Haven’t Bottomed Out Yet
- What Is a Neocloud? The GPU Clouds Powering the AI Boom
Neoclouds are specialist cloud providers, such as CoreWeave and Nebius, that rent clusters of Nvidia GPUs to AI labs, startups and Big Tech firms. Many have crypto roots: CoreWeave began as an Ethereum miner, and Bitcoin miners have signed AI hosting deals worth billions with Microsoft, Amazon and Anthropic. The model depends on chips, power and capital, and its weak point is depreciation: in the second quarter of 2026, CoreWeave reported nearly $1.4 billion of depreciation and amortization against about $2.6 billion of revenue. Neocloud shares sold off in October 2026 after Gartner predicted that more than 80% of providers will stop operating independently by 2030.
- AI Cloud Stocks Rise as Musk Calls Overcapacity Talk 'Ridiculous': Nebius and CoreWeave Gain 3%, Oracle Edges Higher
AI cloud stocks rebounded from last week's selloff, with Nebius up 3% to $176.60, CoreWeave up 3% to $63.77 and Oracle up 1%. On SpaceX's Q3 2026 earnings call, Elon Musk called overcapacity talk 'ridiculous' and said hyperscalers keep asking to rent more compute, reversing the tone of his 'Yikes' post on X the week before, which followed rising yields on CoreWeave's bonds. Nebius said it could sell all of next year's planned capacity at current prices and has $37.5 billion in remaining performance obligations, though it faces customer concentration and heavy infrastructure spending. The article suggests financing, especially CoreWeave's reliance on debt, will decide the next move, and that these shares remain volatile.
- Anthropic in talks for second multibillion-dollar Nscale deal - CNBC
Anthropic is in talks with U.K.-based Nscale for a second multibillion-dollar deal to lease computing capacity at a U.S. site, according to CNBC, citing a person familiar with the matter. The agreement would reportedly cover a second 460-megawatt data center at the West Virginia site of an initial deal announced in August, and could be worth about $45 billion. Competitors CoreWeave and Nebius saw their shares fall 28% and 27%, respectively, over the past month. The Telegraph reported that Microsoft pulled out of a deal to anchor an Nscale data center outside London due to power grid connection delays, and Nscale, which filed to go public on the NYSE in September, is reportedly delaying those plans amid valuation concerns in the sector.
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The Fed is expected to hold its policy rate at 3.75-4% at its 27-28/10 meeting, even though September CPI and PPI both rose more than forecast and inflation has made little progress back toward the 2% target. Chair Kevin Warsh gave no signal on 16/10 that would change market expectations, cutting the odds of an October hike to about 15%. Robert Kaplan of Goldman Sachs said doing nothing is the option with the fewest hurdles, while Claudia Sahm argued the Fed has enough reason to act this week. The 10-year Treasury yield, which topped 5.3%, the highest in 24 years, fell 0.19 percentage points to 4.95% on 22/10 as tech stocks were sold off. Fed officials remain divided, with Logan, Hammack and Kashkari having opposed the July decision to hold rates.
- Here's Exactly What Investors Should Look for From the Federal Reserve's October Meeting
The Fed will announce its rate decision at 2 p.m. ET on Wednesday, and the CME FedWatch tool puts a 90% probability on holding the target range at 3.75%-4%. The statement is expected to use language similar to September's, when the Fed raised rates by a quarter point and said inflation remains elevated, while productivity growth is strong. A report on September's consumer spending and personal income, due Thursday, will offer a fresh look at the inflation picture. Markets are pricing in another quarter-point increase in December. The author notes that rate moves tend to be short-lived for high-quality stocks, so investors whose holdings may be vulnerable to rate news may want to review those positions more closely.
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