CoreWeave, Inc. (CRWV) surged 5.94% in intraday trading on Thursday, reflecting a sharp rebound in the AI-focused stock. The movement comes amid broader gains in the AI sector and a reassessment of recent debt-related concerns.
Seaport Research analyst Jay Goldberg suggested that the selloff in CoreWeave and other neocloud companies may have been overdone, citing improved credit profiles and fixed rental contracts as stabilizing factors. The stock also benefited from a positive ripple effect following Micron Technology's upbeat earnings report, which bolstered sentiment across the AI trade.
While debt concerns remain a topic of discussion, Goldberg noted that CoreWeave's delayed drawdown term loans are matched to specific contracts, providing cash flow certainty. The broader AI sector, however, continues to face scrutiny over funding durability and cash flow visibility.
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