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CoreWeave stock keeps falling as fears of AI spending drag down markets. Here’s the latest on what’s happening

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CoreWeave stock keeps falling as fears of AI spending drag down markets. Here’s the latest on what’s happening

Shares of CoreWeave Inc. (Nasdaq: CRWV) have fallen more than 25% in the last week as concerns grow over the company’s debt and the success of the “neocloud” industry as a whole. 

On Thursday, the cloud-computing company’s stock fell up to 7% during premarket as investors continued to fret about potential overspending on AI. The decline followed a drop of 15.46% during the previous trading day.

AI-adjacent companies across the globe are seeing similar losses, including semiconductor firms such as South Korea-based SK Hynix, whose U.S.-listed shares fell more than 6% during the day, and Sandisk, which dropped over 5% in premarket trading. 

Markets dipped overall, with South Korea’s Kospi index falling more than 7% on Thursday and the Nasdaq-100 falling over 2% on Wednesday. 

On Wednesday, Gartner predicted that over 80% of neocloud providers could close by 2030 as a result of cost pressure and “a lack of a differentiating business model.” It expects much of the neocloud market to consolidate over the next four years. 

Gartner explained that, by the end of the decade, “over $3.5 trillion of AI infrastructure spending could be exposed to impairment.”

The firm’s research found that relying on enterprise and consumer AI revenue alone wouldn’t be enough for many AI companies to see profitable returns. 

5 trillion in revenue to cover announced capital spending, financing costs, and a 12% return on invested capital (ROIC), which we assume to be the hurdle rate of investment capital,” Gartner’s senior director analyst Will Sommer explained.



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