Here’s Why CoreWeave Stock Plunged but Then Recovered This Week

It was a volatile week for the stock markets, especially in the tech sector. Artificial intelligence (AI) stocks were especially in focus. Shares of AI infrastructure provider CoreWeave (CRWV +20.03%) had plunged as much as 20% before a sharp rebound on Friday.

CoreWeave stock ended the week down just 3.4%, according to data provided by S&P Global Market Intelligence. Investors are trying to decide whether all the spending on AI is good or bad for names like CoreWeave.

Image source: Getty Images.

AI bubble or boom?

First, it was Alphabet, and then Amazon. Both tech giants made surprising 2026 AI capital-spending announcements alongside their earnings releases. All told, the five largest hyperscalers now have guided investors to expect at least $600 billion in AI capital spending this year.

That should be great for CoreWeave, theoretically. But investors began to feel it meant there really is a bubble in AI spending. Some investors panicked, causing the early week sell-off. The fear is that returns on that massive spending may fail to materialize, causing a crash that could significantly alter the investing thesis.

Today’s Change

(20.03%) $14.96

Current Price

$89.61

Key Data Points

Market Cap

$45B

Day’s Range

$77.16 – $90.56

52wk Range

$33.52 – $187.00

Volume

1.1M

Avg Vol

31M

Gross Margin

49.23%

A sharp rebound on Friday reversed some of those losses, however, after Nvidia CEO Jensen Huang chimed in. During an interview with CNBC, Huang called the capex spending appropriate and believes it is sustainable. He added, “The reason for that is because all of these companies’ cash flows are going to start rising.”

That confidence spread throughout the markets and helped CoreWeave’s stock bounce back from earlier in the week.