- CRWV
- NBIS
- NVDA
CoreWeave (CRWV) stock fell 7% in early trading on Friday as concerns over AI funding continued to weigh on investor sentiment.
The decline comes after CoreWeave stock rebounded from a 7% drop on Thursday, following comments from (NVDA) CEO Jensen Huang that helped ease concerns over the company’s debt-heavy balance sheet.
“CoreWeave’s strength is improving every day,” Huang shared at a Bloomberg event in Stockholm. “I’m optimistic. Their cost of capital is actually decreasing.”
A viral chart showing CoreWeave’s spiking bond yields earlier this week underscored concerns about the company’s debt-heavy balance sheet and whether it can scale its business quickly enough to cover rising interest expenses.
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Nvidia’s backing is significant, given that the AI chip giant holds roughly 47.2 million shares of CoreWeave, representing about a 10% stake in the company.
CoreWeave is also a major <a href="https://bitcomme.com/mytv-uses-ai-to-enhance-the-customer-experience-with-digital-content/” title=”MyTV uses AI to enhance the customer experience with digital content.”>customer of Nvidia’s chips, underscoring the close ties between the two companies.
CoreWeave was on track to finish the week down 21% as of Thursday’s close, following a volatile stretch.
Meanwhile, peer Nebius (NBIS) fell 5% in early trading, putting it on course for weekly losses as well.
Ines Ferre is a senior business reporter for Yahoo Finance.
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