CoreWeave Shares Fall 53 Percent From Peak as High Debt Weighs Against Rapid AI Expansion

Artificial intelligence infrastructure provider CoreWeave Inc. has seen its stock price drop to approximately $86 per share, marking a 53 percent decline from its peak following an initial public offering in early 2025, according to financial data and analysis published by Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/down-53-still-buy-coreweaves-174000860.html). The company went public on March 28, 2025, pricing its shares at $40 before a rally carried the stock to an all-time high of $183.58 on June 20, 2025.

CoreWeave initially operated as an Ethereum cryptocurrency mining company. Following the digital asset market downturn in 2018, the business pivoted by repurposing its graphics processing units to serve cloud-based artificial intelligence workloads. By the end of 2022, CoreWeave had opened three dedicated data centers to support that infrastructure model.

The company now operates 51 data centers across North America and Europe, hosting more than 250,000 Nvidia GPUs in its server clusters. Semiconductor designer Nvidia holds an 11.5 percent equity stake in CoreWeave, making it one of the company's largest outside investors. CoreWeave claims its dedicated cloud compute infrastructure processes AI workloads roughly 35 times faster and 80 percent more cheaply than generalized public cloud offerings such as Amazon Web Services and Microsoft Azure.

The company's primary enterprise customer roster includes Meta Platforms, Microsoft, OpenAI, and Anthropic. In 2025, CoreWeave's revenue grew 168 percent year-over-year to $5.1 billion, while its adjusted earnings before interest, taxes, depreciation, and amortization rose 154 percent to $3.1 billion.

Analyst consensus estimates reported by Yahoo Finance project full-year 2026 revenue to expand 151 percent to $12.9 billion, alongside a 144 percent increase in adjusted EBITDA to $7.5 billion. By the close of the second quarter of 2026, CoreWeave's contracted revenue backlog rose 246 percent year-over-year to $104 billion, with the company anticipating three-quarters of its 2026 revenue to be committed under those multi-year customer agreements.

Despite rapid top-line growth, CoreWeave remains unprofitable on a Generally Accepted Accounting Principles basis due to significant depreciation on server hardware and mounting interest charges tied to expansion debt. After repeatedly issuing debt and equity to finance its capital footprint, the company concluded its latest quarter with a debt-to-equity ratio of 14.3.

Looking ahead, analyst models project CoreWeave's revenue and adjusted EBITDA to grow at compound annual rates of 101 percent and 110 percent, respectively, from 2025 to 2028. Following its market pullback, CoreWeave shares trade at approximately 12 times projected 2026 adjusted EBITDA as investors balance sector-wide compute demand against balance sheet leverage and higher macroeconomic interest rates.