CRWV Stock Warning: Why Bernstein Says CoreWeave Shares Haven’t Bottomed Out Yet

Once a high-flying artificial intelligence (AI) cloud infrastructure player, CoreWeave (CRWV) is now facing a growing crisis of confidence on Wall Street. Shares tumbled to a 52-week low of $53.50 on Oct. 22 as rising interest rates and mounting concerns over the cost of the AI infrastructure boom rattled both stock and bond investors. Debt-heavy neocloud providers like CoreWeave are increasingly under scrutiny, with investors questioning whether the company can finance its massive AI expansion without taking on excessive financial risk.

The pressure is showing up in the bond market, too, with yields on some CoreWeave bonds climbing to roughly 15%. Adding to the gloom, Bernstein recently cut its price target on CRWV stock to $51 from $74 while maintaining an “Underperform” rating. Still, Bernstein analyst Madison Rezaei does not expect CoreWeave to go to zero, citing its backlog and the possibility that Nvidia (NVDA) — which owns about 9% of the company — could step in.