CoreWeave Stock and Bonds Slide Amid Fears of Rising Interest Rates
Cloud computing company CoreWeave's stock and bonds have seen significant weekly losses as investors question its $50 billion debt load in an environment of potentially rising interest rates.
CoreWeave, a US-based cloud computing firm heavily involved in AI infrastructure and backed by Nvidia, experienced a sharp decline in its stock value and its 2031 bonds this week. The selloff is attributed to investor concerns about the company's ability to manage its substantial debt of approximately $50 billion should borrowing costs increase.
The market downturn also impacted peers in the AI infrastructure space, including Nebius Group, and data center operators Applied Digital and IREN. Data from S&P Global Market Intelligence indicated that the cost of insuring CoreWeave's debt reached record highs, signaling increased investor apprehension.
Despite the market turbulence, analysts at Evercore maintained their 'outperform' rating on CoreWeave's stock, pushing back against the notion that the rise in bond yields reflected a failure in the company's business model. Regulatory filings also revealed that CoreWeave CEO Michael Intrator and related entities have sold nearly $1 billion worth of stock since the company's IPO in March 2025, largely under pre-arranged trading plans.