CoreWeave, Inc. (CRWV) saw its stock price decline by approximately 24% over the past month, largely due to investors reassessing high valuations amid escalating competition within the AI infrastructure sector. This decline is significantly steeper compared to the Zacks Internet-Software Market, which dropped 3.4%, and the S&P 500’s decrease of 1.8%. In contrast, direct competitor Nebius Group N.V. (NBIS) fell 16.9%, while Microsoft (MSFT) dropped 8.7% during the same timeframe.
The company reported a significant adjusted net loss of $589 million for the first quarter, surpassing last year’s loss of $150 million. It is projected to raise its full-year capital expenditure outlook to between $31 billion and $35 billion, amidst rising competition from major players such as Meta, Amazon, and Microsoft. CoreWeave’s long-term debt stood at $25.4 million as of March 31, 2026, with interest expenses expected to rise to $730 million.
Despite these challenges, CoreWeave’s revenue grew by over 100% year-over-year in Q1 2026, driven by robust demand for AI infrastructure. The company aims to expand its infrastructure capacity to 8 GW by 2030, with substantial growth in contracted power and revenue expected in the future. However, the Zacks Consensus Estimate for its 2026 earnings has been revised downward by 8.3% in recent weeks.
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