CoreWeave stock drops 5% on GPU shortage despite strong demand

CoreWeave's stock fell 4.9% to $94.94 on Wednesday, reversing part of the previous day's 11.7% gain, despite the AI cloud provider reporting severe GPU shortages and strong demand. CEO Michael Intrator said the company is "struggling to meet demand every day," noting every available Nvidia GPU could be sold to multiple customers. The firm raised prices 25% in July and holds a $104 billion revenue backlog, but capital expenditure forecasts climbed to $35-39 billion for 2026. The selloff reflects timing concerns: heavy upfront spending on GPUs, data centers, and debt financing at 8.2-9.2% interest precedes future revenue. Analysts remain divided, with price targets ranging from $74 to $165, as the key risk is whether pricing power can outpace infrastructure and borrowing costs.