CoreWeave Stock Drops 41% Amid AI Infrastructure Cost Concerns
CoreWeave shares fell 41% in October due to high build-out costs and rising bond yields despite strong backing from Nvidia.
Shares of CoreWeave declined 41% over three weeks in October 2026. The sell-off followed investor anxiety over the high costs of building AI infrastructure and a surge in bond yields, which reached 15%.
Nvidia continues to support the company through a $2 billion stake and an agreement to backstop up to $6.3 billion in unused cloud capacity through 2032. Nvidia CEO Jensen Huang defended the company, stating that its cost of capital is decreasing.
Market analysts point to tight industry capacity as a catalyst for potential recovery. Amazon CEO Andy Jassy noted that AWS capacity is nearly sold out through 2027, suggesting sustained demand for AI compute. Investors are also looking toward an upcoming Federal Open Market Committee meeting for potential interest rate cuts that could ease debt refinancing.
CoreWeave is scheduled to report third-quarter earnings on November 11. Analysts project revenue will grow 159.4% to $3.54 billion.
