CoreWeave Shares Fall as Debt and AI Spending Risks Mount

CoreWeave shares fell more than 15% on 14 October amid a wider selloff in AI infrastructure stocks. The decline followed D.A. Davidson analyst Gil Luria’s warning that CoreWeave equity could be wiped out if AI spending slows. He said the company’s borrowing cost is about 9%, compared with an estimated return on invested capital of roughly 1%, or 4–5% at best. Luria maintained a Neutral rating and said the zero-equity scenario was not his base case. The warning added to existing concerns about CoreWeave’s debt and profitability. The company had nearly $50 billion in debt, or about $52 billion including lease obligations, and reported a net loss despite quarterly revenue above $2.58 billion. Its second-quarter net interest expense was about $640 million. At the same time, CoreWeave reported a $104.2 billion revenue backlog at the end of the second quarter of 2026. CoreWeave bonds sold off, with yields rising to 15–16%, while credit-default-swap pricing indicated elevated five-year default risk. The wider AI infrastructure downturn has erased an estimated $80 billion in market value, and hotter US inflation has added to concerns about financing costs. Traders are watching whether AI demand and hyperscaler spending can generate returns above CoreWeave’s borrowing costs. Upcoming hyperscaler earnings could help restore confidence, but debt, bond yields and evidence of sustained AI demand remain key risks for CoreWeave shares.