The CoreWeave Roller Coaster Dips Again — and Wall Street Can’t Decide What It’s Worth

CoreWeave’s (Nasdaq: CRWV) wild ride isn’t slowing down — it just keeps getting harder to hold on. After rising 13% earlier in the week, the stock plunged 14% across Thursday and Friday, leaving traders dazed and analysts divided. One day it’s the future of AI infrastructure, the next it’s getting slapped with a valuation downgrade that implies it’s already over its skis.

The latest jolt came from HSBC, which issued a stark downgrade on CoreWeave with a $32 price target a fully $90 below their closing price on Friday! — representing a 73% drop from Wednesday’s close. Analyst Abhishek Shukla cited multiple concerns: ballooning infrastructure costs, rising data center rent (already at 16% of Q1 revenue), high interest rates nearing 12.4%, and heavy cash burn. He also flagged concentration risk, with Microsoft accounting for roughly 72% of Q1 revenue, and warned that major hyperscalers like Microsoft may eventually bypass CoreWeave entirely and source GPUs directly from Nvidia. In short, HSBC sees CoreWeave’s financial model — from cost of capital to customer dependence — as increasingly fragile, even amid the AI hype.

But if you’re tuning into financial TV, you’d think CoreWeave is still the no-brainer pick of the AI boom. While being asked about on AI Infrastructure stock Nebius (Nasdaq: NBIS) Jim Cramer doubled down on his endorsement this week, saying:

“Okay, Nebius, I checked them out when I was at GTC… at the big NVIDIA trade show. And I came back and I said, CoreWeave, just buy CoreWeave. Don’t deviate, buy CoreWeave. And so far, that’s been very right.”

TheMarketAI.com Take:

CoreWeave’s rise — from $16 million in revenue to nearly $2 billion, and a stunning 300% stock surge since its March IPO — has been nothing short of spectacular. But following last week’s acquisition of Core Scientific and the market’s cool reaction, we noted a shift: when a company growing this fast starts acquiring power infrastructure and making data center investments in Pennsylvania, it may be signaling a pivot away from pure growth. In our view, it looks like management is preparing for the curve to flatten — not steepen.

HSBC’s bearish note this week gives further concerns. While Jim Cramer remains bullish, the market’s sharp reversal suggests traders want a simple story: growth at all costs. And right now, anything that even hints at a slowdown is triggering a retreat.

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