CoreWeave stock plunges 16% as debt concerns halve valuation from June peak

CoreWeave, an American artificial intelligence company, saw its stock plunge 16% to $65.36 on Wall Street Wednesday, driven by investor concerns over its debt levels and rising borrowing costs, halving its valuation from its June 2025 peak. The "neocloud" firm builds AI-optimized data centers, leasing computing power to tech giants like Meta and Microsoft. These costly facilities, packed with expensive Nvidia chips, are financed through massive debt issuance, with the company owing creditors about $35.6 billion as of late June. Investors are demanding higher premiums to hold CoreWeave's debt, with yields on 2031 and 2032 bonds around 15%. Analyst Gil Luria called the company "a textbook example of irresponsible behavior," while CEO Mike Intrator blamed market "irrationality." Its November quarterly results will be closely watched.