CoreWeave's $10B Selloff: Deutsche Bank Sees Buying Opportunity

CoreWeave's market value has dropped over $10 billion in four trading days amid debt concerns, triggering a selloff, though Deutsche Bank views the decline as a buying opportunity. The AI cloud provider saw shares fall 9.5% intraday Thursday before closing up 5.94%, while credit risk metrics hit record highs and high-yield bonds fell to distressed levels. Deutsche Bank analyst Brad Zelnick maintained a "buy" rating, citing strong customer base and execution capabilities, while acknowledging future capital needs. Nvidia CEO Jensen Huang expressed confidence in CoreWeave's financial strength, noting improving funding costs. However, Gartner warned that over $3.5 trillion in AI spending could face impairment by 2030, predicting over 80% of emerging AI cloud providers may not survive independently.