Key Stats for CoreWeave Stock
- Price change for CoreWeave stock in the last 6 months: 23%
- $CRWV Stock Price as of Sep. 28: $85
- 52-Week High: $153
- $CRWV Stock Price Target: $142
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Treasury yields hit their highest level since 2007 this week. The 10-year yield sits near 5.17%, up about 1 percentage point since January.
That’s bad news for AI builders. Higher yields mean companies must pay more to borrow.
JPMorgan estimates $4.1 trillion in AI-related debt will be issued through 2030.
Amazon, Google, Meta and Microsoft have investment-grade credit ratings, so they borrow cheaply. Smaller players have less cushion.
Some strain is already showing. Oracle (ORCL) fell 7% this week after a report said it sent a “force majeure” notice on its New Mexico data center project.
Oracle says the project remains on schedule. SoftBank also raised $11.1 billion in junk bonds, paying yields as high as 9.75%.
Lenders are getting pickier, too. One lender said the market is truly interested in about 20 neoclouds, not 50.
CoreWeave (CRWV) relies heavily on debt to build data centers. Its latest filing said every 1 percentage point rise in rates could add about $30 million to interest expense on its floating-rate debt.
Interest costs are already climbing. Q2 interest expense was $640 million, up from $267 million a year ago.
CoreWeave expects $860 million to $940 million in Q3.
The business is growing fast, though. Q2 revenue jumped 112% to $2.6 billion, and backlog reached $104.2 billion.
Management said near-term capacity is effectively sold out. It also raised prices about 25% in July.
CoreWeave has cut its average borrowing cost by almost 3 percentage points over the past year. That saves about $1.1 billion a year in interest.
See analysts’ growth forecasts and price targets for CoreWeave stock (It’s free) >>>
What the Market Is Telling Us About CoreWeave Stock
So far, CoreWeave stock is holding up. It rose almost 8% this week while Oracle slipped, though it closed down almost 3% in the latest session.
The reason is demand. Many experts believe AI demand is strong enough to absorb higher costs.
Bernie Margulies of American Compute summed it up: “If you have a deal with Anthropic, will 50 basis points really stop you?”
Still, CoreWeave stock carries real risk.
The company plans $35 billion to $39 billion in capital spending this year, much of it funded with debt.
If yields keep rising, CoreWeave stock investors will watch interest costs closely.
Higher rates make AI buildouts more expensive, but strong demand gives CoreWeave room to absorb them.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does CoreWeave Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
