CoreWeave stock under watch after big dip

Cathie Wood buys a sizable CoreWeave stake as Wall Street weighs leverage, capex and regulatory questions.

Cathie Wood Bets on CoreWeave While Wall Street Stays Cautious

Cathie Wood bought 120,229 CoreWeave shares through the ARK Next Generation Internet ETF on a Friday, signaling continued conviction in the AI cloud play. CoreWeave has fallen about 33 percent since reporting its second quarter results, which showed revenue jumping 207 percent year over year but a larger loss than expected. Investors are also wary of a potential selling wave when the lock up for early investors ends. Nvidia raised its stake in CoreWeave in the quarter, a sign of strategic relevance in the AI infrastructure race.

Analysts remain cautious. Bank of America Securities cut its price target to 168 dollars from 185 and kept a Hold rating, noting a 4 percent backlog rise excluding the OpenAI deal was modest and not yet counting a second expansion deal. Morgan Stanley kept a Hold with a 91 dollar target, saying large contracts from Microsoft and OpenAI support top line growth but increase customer concentration risk. Across the street the consensus remains Hold, with a mix of holds, buys and sells and an average target around 115 dollars, implying only modest upside. The story hinges on CoreWeave turning heavy capital expenditure and leverage into durable orders beyond a few big customers.

The move shows how investors still chase AI infrastructure plays even when profits lag. Wood’s dip buy is a test of patience and risk tolerance in a market that rewards certainty more than hype. The bigger question is whether CoreWeave can broaden its customer base enough to reduce dependence on a few giants.

Longer term the AI boom will not be decided by one quarter. The company needs steady contracts, tighter cash management and clearer regulatory clarity. If it can, the sector could turn high spend into durable revenue; if not, volatility will persist and the stock could swing again.

Highlights

The AI infrastructure story remains powerful yet fragile as investors test the clock and the balance sheet.