Alright, let's get one thing straight: this whole AI thing is starting to feel like the dot-com bubble all over again. And CoreWeave? Well, they're right in the thick of it. Up almost 100% YTD? Give me a break. That just screams "unsustainable."
So, Nvidia has a good quarter. Big deal. Ofcourse CoreWeave and Core Scientific jump on the bandwagon. It's the "pick-and-shovel" play, remember? Everyone's gotta get in on the AI gold rush. Jensen Huang says "AI is going everywhere, doing everything, all at once." Yeah, and my uncle says he's gonna win the lottery. I'll believe it when I see it.
CoreWeave is tied to GPU availability, blah, blah, blah. They're Nvidia's "premier cloud partner." Translation: they're completely dependent on one company. What happens when Nvidia's tech gets eclipsed? What happens when the big boys like Amazon and Microsoft decide to build their own damn AI infrastructure? CoreWeave becomes the Blockbuster Video of the AI revolution, that's what.
And Core Scientific? Hosting compute for CoreWeave? It's like a house of cards, folks. One little breeze and the whole thing collapses.
Fast forward to November 2025, and suddenly CoreWeave is "in the market's penalty box." A brutal post-earnings sell-off? Analyst commentary turning sour? Sounds about right. The stock's hovering in the mid-$70s, almost 30% below where it was trading just a week earlier. Ouch.
Some genius at Seeking Alpha is calling the pullback a "golden opportunity for aggressive growth investors." Translation: "We're trying to pump this thing back up so we can dump our shares."
MarketBeat's asking "Why Is CoreWeave Down Today?" Seriously? Are people really this clueless? The Q3 guidance cut, the data-center delays, the Goldman Sachs price-target cut...it's all right there in black and white. But hey, at least Motley Fool is still shilling the "picks and shovels" narrative. Gotta keep those retail investors buying, right?
And don't even get me started on that Wells Fargo TMT Summit appearance. You know what happens at those things? Execs spew corporate jargon and try to reassure everyone that everything's fine. It's a dog and pony show.
Then there's this Crunchbase Q&A where some VC guy says the AI startup environment is "dangerously overheated." Finally, someone with a brain! But then he tries to walk it back by saying infrastructure providers like CoreWeave are "more grounded." Please. They're all riding the same wave.
Let's talk about the elephant in the room: debt. CoreWeave is drowning in it. Something like $2.3 billion in GPU-backed loans at 15% interest? Are you kidding me? And another $7.5+ billion at "still-high" single-digit rates? That's not a growth story, that's a ticking time bomb.
And the margins are slipping! Adjusted operating margin down to 16% from 21% a year earlier. "Rising infrastructure costs, expensive Nvidia GPUs and intense competition..." Yeah, welcome to capitalism. It's not always sunshine and rainbows.
The Verge calls CoreWeave the "poster child of the AI infrastructure bubble." I couldn't have said it better myself. Kerrisdale Capital thinks the stock is worth $10 a share if things go south. Now that's a price target I can get behind.
Microsoft is two-thirds of their revenue? And they're building their own AI chips? Do the math, people.
CoreWeave is a classic case of hype over substance. They're riding the AI wave, sure, but they're doing it with a mountain of debt and a business model that's way too reliant on Nvidia and a handful of big customers. The stock might bounce back, it might even go higher. But I wouldn't touch it with a ten-foot pole. Then again, maybe I'm just a grumpy old cynic...nah.
McKinsey: What They Do and the AI Report
2025-11-21
