CoreWeave (NASDAQ: CRWV) shares fell 7% in early Friday trading as persistent concerns about AI sector financing continued to drag on investor confidence.
The drop follows a brief rebound from a 7% decline on Thursday, a session in which comments from Nvidia (NASDAQ: NVDA) CEO Jensen Huang had temporarily steadied nerves around CoreWeave’s heavily leveraged balance sheet.
Huang spoke at a Bloomberg event in Stockholm, offering a direct defense of the cloud computing company’s financial trajectory and near-term outlook.
“CoreWeave’s strength is improving every day,” Huang said. “I’m optimistic. Their cost of capital is actually decreasing.”
Despite the brief reprieve Huang’s comments provided, underlying anxiety about CoreWeave’s debt load resurfaced and sent the stock lower again by Friday morning.
A viral chart circulating earlier in the week had illustrated spiking bond yields for CoreWeave, sharpening market fears about whether the company can grow its business fast enough to service rising interest expenses.
Nvidia’s stake in CoreWeave adds a layer of complexity to the situation, with the chip giant holding roughly 47.2 million shares, representing approximately a 10% ownership position in the company.
CoreWeave is also a significant customer of Nvidia’s chips, meaning the financial health of one company carries direct implications for the other’s revenue outlook.
As of Thursday’s close, CoreWeave was on track to finish the week down 21%, capping a bruising and volatile stretch for the stock.
Peer company Nebius (NASDAQ: NBIS) also felt the pressure, falling 5% in early Friday trading and heading toward its own set of weekly losses alongside CoreWeave.
The broader market selloff in AI-linked names reflects a growing unease among investors about the sustainability of capital-intensive business models in the current interest rate environment.
CoreWeave’s situation has become a flashpoint for wider questions about how aggressively AI infrastructure companies have leveraged their balance sheets to fund rapid expansion.
