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CoreWeave Stock Declines Amid AI Bubble Concerns
CoreWeave (NASDAQ: CRWV) saw a significant stock plunge of 45.3% last month, following a remarkable rise of 300% earlier in the year. The company currently holds a market capitalization of approximately $38 billion, eclipsing its expected revenue for 2025 by over seven times, despite not projecting profitability. Investors have reacted to the company’s revenue backlog exceeding $55 billion, which includes potential future revenue from recent deals.
Industry experts highlight a potential imbalance in AI infrastructure demand as major tech firms continue to make substantial investments and partnerships with providers like CoreWeave. However, concerns remain regarding sustainability, particularly as CoreWeave’s valuation may not align with its fundamentals amid current shifts in capital spending. Monitoring developments in electricity supply for data centers and overall market conditions will be essential for investors.
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