CoreWeave shares fall about 15.5% as AI borrowing concerns weigh on markets
In short
CoreWeave shares fell about 15.5% in New York on October 14 as investors scrutinised debt-funded AI infrastructure expansion. Its bond prices also dropped, while the chief executive said the company's backlog was sufficient to cover its obligations.
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CoreWeave shares fell about 15.5% in New York on October 14 as concerns about debt-financed AI infrastructure spending coincided with pressure on its bonds. Yonhap reported a closing price of $65.80, while Korea Economic Daily gave $65.78 and a 15.46% decline. The stock had fallen as much as 17% during the session, according to Yonhap. Newsis reported a 15.5% drop, citing CNBC. [ 2 , 3 , 4 ]
The company's 2032 bonds traded below 80 cents per dollar of face value, according to reports citing Bloomberg. Newsis and Yonhap put their yield at 14.8%, while Korea Economic Daily and Asia Economy reported yields above 15%. The accounts did not reconcile those quotations. Yonhap said credit-default-swap prices implied a probability of default within five years exceeding 50%, a market assessment rather than a reported default. [ 2 , 3 , 4 , 5 ]
The reports described a business that borrows to obtain Nvidia chips and build data centres, then uses customer payments for computing capacity to repay debt. Yonhap linked renewed financing concerns to September US consumer-price inflation of 3.7%, above the 3.6% forecast, and expectations of further interest-rate increases. It reported declines of 8.8% for Oracle and 10.1% for Nebius, while the Nasdaq Composite fell 1.9%. [ 3 , 4 ]
CoreWeave chief executive Mike Intrator rejected the market's concerns in a memo to employees, according to Newsis and Yonhap. He said markets sometimes misunderstood a new type of technology company and reacted irrationally, and expressed confidence that the order backlog could cover all obligations. Maeil Business also quoted Freedom Capital Markets researcher Paul Meeks forecasting a substantial profitability improvement in the fourth quarter. [ 1 , 2 , 3 ]
Why it matters
Reports linked the selloff to concerns about financing costly data centres and AI chips as borrowing costs rose. Other AI infrastructure and semiconductor stocks also fell, with the Nasdaq Composite down 1.9%.
Key facts
- CoreWeave shares closed about 15.5% lower on October 14 after falling as much as 17% intraday. [ 2 , 3 , 4 , 5 ]
- Reports put the price of its 2032 bonds below 80 cents per dollar of face value. [ 1 , 3 , 4 , 5 ]
- Chief executive Mike Intrator told employees the backlog was sufficient to meet all obligations. [ 2 , 3 ]
Confirmed by several sources
- CoreWeave shares and bond prices fell amid concerns about AI infrastructure borrowing. [ 3 ]
Still unclear
- The precise reported yield on CoreWeave's 2032 bonds. Newsis and Yonhap reported 14.8%, while Korea Economic Daily and Asia Economy said yields exceeded 15%; the reports do not reconcile the quotations.