Reasons Behind the Sharp Decline of CoreWeave Stock This Week
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 07 2025
0mins
Should l Buy CRWV?
Source: Fool
Stock Performance: CoreWeave's stock experienced a 13.5% decline over the last week, reflecting investor caution regarding growth-dependent valuations in the AI sector, despite being up 123% since its IPO earlier this year.
Acquisition Plans: The company announced plans to acquire OpenPipe, which specializes in AI training, and is also pursuing a $9 billion all-stock deal for Core Scientific, leading to investor skepticism and concerns about potential dilution of existing shares.
Market Trends: The AI market is expected to undergo significant consolidation, and while CoreWeave's acquisitions could enhance its technology and reduce costs, the recent sell-offs indicate investor wariness about these strategic moves.
Funding Strategies: CoreWeave is planning to sell large blocks of new stock to raise funds, which raises questions about the perceived overvaluation of its shares and the impact on current shareholders' equity.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 95.700
Low
68.00
Averages
123.23
High
180.00
Current: 95.700
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CoreWeave's AI Infrastructure Demand Drives Growth
- Revenue Growth Outlook: CoreWeave is projected to see a 136% revenue spike to $12 billion in 2026, primarily driven by its robust backlog and increased AI spending, significantly enhancing the company's market valuation.
- Customer Base Expansion: Major contracts from clients like Meta, Microsoft, and OpenAI have propelled CoreWeave's revenue backlog to nearly quadruple, reaching $55.6 billion in Q3 2025, indicating strong demand in the AI infrastructure sector.
- Investment and Capacity Enhancement: Recently, CoreWeave secured a $2 billion investment from Nvidia, which will expedite the expansion of its data centers, aiming to increase its current 590 megawatts of capacity to over 1 gigawatt within the next 12 to 24 months, further solidifying its market position.
- Attractive Market Valuation: With a current sales multiple of just 10 times, investors buying CoreWeave stock now could see substantial returns by 2026, as its market cap is expected to rise from $50 billion to $120 billion based on future growth potential.
See More
CoreWeave Faces Class Action Lawsuit for Securities Violations
- Class Action Reminder: The Schall Law Firm alerts investors that CoreWeave is facing a class action lawsuit for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities transactions from March 28 to December 15, 2025, with a deadline for investor contact set for March 13, 2026.
- False Statements Exposed: The complaint alleges that CoreWeave made false and misleading statements to the market, claiming it could meet customer demand while downplaying the risks associated with relying on a single third-party vendor, resulting in investor losses once the truth was revealed.
- Failed Acquisition Impact: CoreWeave's unsuccessful acquisition of Core Scientific and delays in bringing data centers online, along with media reports, have unveiled the true state of its operations, exacerbating the risk of investor losses.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected shareholders to reach out before class certification to ensure their rights are protected and to avoid being absent class members.
See More
CoreWeave Investors Face Class Action Lawsuit Over Misleading Statements
- Class Action Initiated: The Portnoy Law Firm has advised CoreWeave investors of a class action lawsuit for those who purchased securities between March 28 and December 15, 2025, with a deadline for lead plaintiff motions set for March 13, 2026, highlighting potential legal liabilities for the company.
- Major Pre-IPO Deal: On March 10, 2025, CoreWeave announced a deal worth up to $11.9 billion with OpenAI for AI infrastructure; however, the lawsuit alleges that the company overstated its ability to meet customer demand during this period, potentially undermining investor confidence.
- Merger Agreement Termination: On October 30, 2025, Core Scientific failed to secure enough shareholder votes to approve its merger with CoreWeave, leading to the termination of the agreement and a subsequent 6% drop in CoreWeave's stock price, reflecting market concerns over the company's merger prospects.
- Revenue Guidance Downgrade: On November 10, 2025, CoreWeave lowered its revenue guidance for 2025 due to delays from a third-party data center developer, resulting in a further 16% drop in stock price, indicating significant operational and supply chain management challenges facing the company.
See More
OpenAI Hires Top AI Developer, Potentially Benefiting These Stocks.
- OpenAI's New Hire: OpenAI has recruited the founder of OpenClaw, a leading independent AI project in recent months.
- Implications for Companies: This development is seen as positive for companies like Oracle, CoreWeave, and Microsoft, which are looking for a successful IPO from the AI startup.
See More
CoreWeave: A Prime Investment in AI Infrastructure
- Attractive Valuation: CoreWeave, currently valued at $48 billion, trades at just 10 times sales, which is particularly impressive in the rapidly growing AI infrastructure sector, indicating significant future growth potential.
- Strong Market Demand: The top four hyperscalers in the U.S. are expected to spend a staggering $700 billion on data center construction by 2026, representing a nearly 78% increase from last year, providing robust market demand support for CoreWeave.
- Surge in Contracts: CoreWeave's revenue backlog nearly quadrupled to $55.6 billion in Q3 2025, primarily driven by substantial contracts from Meta, Microsoft, and OpenAI, which propelled its quarterly revenue to a 133% year-over-year increase.
- Investment Accelerates Expansion: Recently, CoreWeave secured a $2 billion investment from Nvidia, aiming to increase its data center capacity from 590 megawatts to over 1 gigawatt within the next 12 to 24 months, which will accelerate growth and enhance market competitiveness.
See More
CoreWeave Faces Class Action Lawsuit Amid Significant Stock Declines
- Class Action Filed: Bleichmar Fonti & Auld LLP has initiated a class action lawsuit against CoreWeave and its executives for securities fraud, following significant stock drops due to potential violations of federal securities laws, with investors encouraged to apply to lead the case by March 13, 2026.
- Stock Price Volatility: CoreWeave's stock price fell by over 6% on October 30, 2025, from $139.93 to $131.06 after Core Scientific failed to secure enough shareholder votes to approve their merger, indicating market concerns about the merger's viability.
- Guidance Downgrade: On November 10, 2025, CoreWeave lowered its revenue and operating income guidance due to delays from a third-party data center developer, resulting in a 16% drop in stock price from $105.61 to $88.39, highlighting significant challenges in meeting customer demand.
- Construction Delays Revealed: The Wall Street Journal reported on December 15, 2025, that delays in a major data center project in Texas led to a further 3% decline in stock price from $72.35 to $69.50, exacerbating investor concerns regarding the company's operational capabilities.
See More
CoreWeave's AI Infrastructure Demand Drives Growth
- Revenue Growth Outlook: CoreWeave is projected to see a 136% revenue spike to $12 billion in 2026, primarily driven by its robust backlog and increased AI spending, significantly enhancing the company's market valuation.
- Customer Base Expansion: Major contracts from clients like Meta, Microsoft, and OpenAI have propelled CoreWeave's revenue backlog to nearly quadruple, reaching $55.6 billion in Q3 2025, indicating strong demand in the AI infrastructure sector.
- Investment and Capacity Enhancement: Recently, CoreWeave secured a $2 billion investment from Nvidia, which will expedite the expansion of its data centers, aiming to increase its current 590 megawatts of capacity to over 1 gigawatt within the next 12 to 24 months, further solidifying its market position.
- Attractive Market Valuation: With a current sales multiple of just 10 times, investors buying CoreWeave stock now could see substantial returns by 2026, as its market cap is expected to rise from $50 billion to $120 billion based on future growth potential.
See More
CoreWeave Faces Class Action Lawsuit for Securities Violations
- Class Action Reminder: The Schall Law Firm alerts investors that CoreWeave is facing a class action lawsuit for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities transactions from March 28 to December 15, 2025, with a deadline for investor contact set for March 13, 2026.
- False Statements Exposed: The complaint alleges that CoreWeave made false and misleading statements to the market, claiming it could meet customer demand while downplaying the risks associated with relying on a single third-party vendor, resulting in investor losses once the truth was revealed.
- Failed Acquisition Impact: CoreWeave's unsuccessful acquisition of Core Scientific and delays in bringing data centers online, along with media reports, have unveiled the true state of its operations, exacerbating the risk of investor losses.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected shareholders to reach out before class certification to ensure their rights are protected and to avoid being absent class members.
See More
CoreWeave Investors Face Class Action Lawsuit Over Misleading Statements
- Class Action Initiated: The Portnoy Law Firm has advised CoreWeave investors of a class action lawsuit for those who purchased securities between March 28 and December 15, 2025, with a deadline for lead plaintiff motions set for March 13, 2026, highlighting potential legal liabilities for the company.
- Major Pre-IPO Deal: On March 10, 2025, CoreWeave announced a deal worth up to $11.9 billion with OpenAI for AI infrastructure; however, the lawsuit alleges that the company overstated its ability to meet customer demand during this period, potentially undermining investor confidence.
- Merger Agreement Termination: On October 30, 2025, Core Scientific failed to secure enough shareholder votes to approve its merger with CoreWeave, leading to the termination of the agreement and a subsequent 6% drop in CoreWeave's stock price, reflecting market concerns over the company's merger prospects.
- Revenue Guidance Downgrade: On November 10, 2025, CoreWeave lowered its revenue guidance for 2025 due to delays from a third-party data center developer, resulting in a further 16% drop in stock price, indicating significant operational and supply chain management challenges facing the company.
See More
OpenAI Hires Top AI Developer, Potentially Benefiting These Stocks.
- OpenAI's New Hire: OpenAI has recruited the founder of OpenClaw, a leading independent AI project in recent months.
- Implications for Companies: This development is seen as positive for companies like Oracle, CoreWeave, and Microsoft, which are looking for a successful IPO from the AI startup.
See More
CoreWeave: A Prime Investment in AI Infrastructure
- Attractive Valuation: CoreWeave, currently valued at $48 billion, trades at just 10 times sales, which is particularly impressive in the rapidly growing AI infrastructure sector, indicating significant future growth potential.
- Strong Market Demand: The top four hyperscalers in the U.S. are expected to spend a staggering $700 billion on data center construction by 2026, representing a nearly 78% increase from last year, providing robust market demand support for CoreWeave.
- Surge in Contracts: CoreWeave's revenue backlog nearly quadrupled to $55.6 billion in Q3 2025, primarily driven by substantial contracts from Meta, Microsoft, and OpenAI, which propelled its quarterly revenue to a 133% year-over-year increase.
- Investment Accelerates Expansion: Recently, CoreWeave secured a $2 billion investment from Nvidia, aiming to increase its data center capacity from 590 megawatts to over 1 gigawatt within the next 12 to 24 months, which will accelerate growth and enhance market competitiveness.
See More
CoreWeave Faces Class Action Lawsuit Amid Significant Stock Declines
- Class Action Filed: Bleichmar Fonti & Auld LLP has initiated a class action lawsuit against CoreWeave and its executives for securities fraud, following significant stock drops due to potential violations of federal securities laws, with investors encouraged to apply to lead the case by March 13, 2026.
- Stock Price Volatility: CoreWeave's stock price fell by over 6% on October 30, 2025, from $139.93 to $131.06 after Core Scientific failed to secure enough shareholder votes to approve their merger, indicating market concerns about the merger's viability.
- Guidance Downgrade: On November 10, 2025, CoreWeave lowered its revenue and operating income guidance due to delays from a third-party data center developer, resulting in a 16% drop in stock price from $105.61 to $88.39, highlighting significant challenges in meeting customer demand.
- Construction Delays Revealed: The Wall Street Journal reported on December 15, 2025, that delays in a major data center project in Texas led to a further 3% decline in stock price from $72.35 to $69.50, exacerbating investor concerns regarding the company's operational capabilities.
See More
