CoreWeave Stock Drops 40 Percent Amid High Infrastructure Spending

CoreWeave experienced a stock price decline of more than 40 percent from its 52-week high, despite reporting significant business growth. The company's revenue rose from $1.9 billion to $5.1 billion in 2025, and it reported a record revenue backlog of $99.4 billion in the first quarter of 2026.

Investor concerns center on the company's capital-intensive business model. CoreWeave spent $15 billion on capital expenditures over the last two quarters to acquire GPUs and build data centers for AI infrastructure. The market is now demanding more evidence that these massive expenditures will generate attractive returns.

Pressure is further compounded by aggressive infrastructure investment from larger competitors, including Amazon, Microsoft, Alphabet, and Meta Platforms. While CoreWeave continues to provide services to major AI labs such as Meta Platforms and Anthropic, the intensified competition and high spending have driven recent market volatility.