AI stock Coreweave falls as market cools on valuations

Coreweave, the AI cloud company co-founded by Swedish tech chief Peter Salanki, is falling sharply on the US stock market, signaling that investor enthusiasm for AI may have outpaced reality. The stock decline reflects growing market scrutiny of AI valuations after a period of rapid gains. Investors are reassessing Coreweave's fundamentals as the sector faces increased competition and questions about sustainable profitability. The company's drop highlights broader volatility in AI-related equities, where high expectations have driven prices up quickly. This correction suggests markets are now demanding stronger evidence of long-term value creation from AI infrastructure providers.