Nvidia-backed CoreWeave (CRWV) says peak AI investment is still nowhere near.
“The depth of the demand, the scale of the demand, the breadth of the demand is overwhelming,” CoreWeave co-founder and CEO Michael Intrator told me at the Goldman Sachs Communacopia conference on Tuesday. “The industry’s capacity to deliver the compute that is required by OpenAI, by the hyperscalers, by the enterprise, by the sovereigns, it’s just layer after layer of overwhelming demand.”
“And so we’re building as fast as we can, we’re building as large as we can. We’re delivering as many GPUs as we can,” Intrator said. “We’re driving through the middle to try and get this infrastructure into the hands of these incredible companies that really have the capacity to allow artificial intelligence to achieve its potential.”
CoreWeave shares have had a rough go in the past month, down 20% despite impressive demand for its compute.
The pullback in one of the buzziest IPOs of 2025 reflects a few factors.
First, the company’s second quarter net loss was much higher than consensus.
Two, capital expenditures were a whopping $1 billion higher sequentially. And third, capex may climb another $500 million in the current quarter, which will likely cause CoreWeave to add to its already elevated debt levels.
Insiders have been selling CoreWeave’s stock in the wake of its IPO lockup period expiring in mid-August. Plus, questions remain on the company’s use of debt to fund its business. The company could raise billions of dollars more in debt this year alone, analysts have projected.
Intrator says he believes the use of debt is the most efficient way to fund his business’s growth.
“Net-net, there could be a wide range of outcomes for CoreWeave. For this reason, we expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors. If we end up with heightened economic volatility, CRWV shares would probably suffer disproportionately due to risk-off positioning. However, our sense is that investors are pricing in the glass-half-empty view more than the other view,” said JPMorgan analyst Mark Murphy.
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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