CoreWeave shares declined 4.68% to $62.70 in Thursday's premarket trading as investors questioned whether the AI infrastructure company's debt-funded expansion is financially sustainable. The decline followed a 15.46% plunge to $65.78 on Wednesday. The stock was near its 52-week low of $60.55, according to Benzinga Pro data. Broader technology stocks remained under pressure, with Nasdaq futures falling 1.08%. S&P 500 futures slipped 0.22%.
CoreWeave rents AI computing power to major technology companies. CoreWeave has borrowed heavily to build data centers and expand computing capacity. However, rising borrowing costs have raised concerns about CoreWeave's ability to fund future growth. CoreWeave's combined debt and lease obligations reached roughly $52 billion at the end of June. Net interest expense surged to $640 million in the second quarter from $267 million a year earlier.
D.A. Davidson analyst Gil Luria questioned CoreWeave's business model, noting that CoreWeave borrows at roughly 9% while generating returns of about 1%. The gap has fueled concerns that borrowing costs could outpace returns on CoreWeave's infrastructure investments. Higher interest rates have made new projects more expensive to finance for debt-heavy AI companies.
However, CoreWeave co-founder Brannin McBee defended the company's borrowing strategy despite mounting concerns. McBee said the debt supports infrastructure expansion rather than reflecting weakness in CoreWeave's underlying business. McBee said CoreWeave is exploring cheaper financing from insurance companies to reduce borrowing costs. McBee said CoreWeave would become substantially cash-flow positive if the company stopped building new infrastructure today.
Dan Ives of Yorkville Ives defended the broader AI spending outlook. Ives wrote on X on Thursday that upcoming earnings from major cloud computing companies should reinforce expectations for continued AI investment rather than undermine those expectations. Those results could test whether strong AI demand can support the industry's rapidly growing infrastructure spending. Ives dismissed concerns surrounding CoreWeave as overblown, comparing the market reaction with fears of a software-as-a-service industry collapse earlier this year.
CoreWeave remains in a downtrend, trading 25.8% below its 20-day simple moving average. The stock trades 28.7% below its 50-day simple moving average. The stock trades 32.3% below its 200-day simple moving average. The 50-day simple moving average remains below the 200-day simple moving average after crossing below that average in July, reinforcing the bearish trend.
However, CoreWeave's relative strength index stands at 28.84, indicating oversold conditions. The oversold conditions could trigger a short-term rebound but do not confirm a trend reversal. The $60.50 support level remains critical, near the stock's 52-week low of $60.55. A break below $60.50 could increase selling pressure.
CoreWeave Stock Falls Amid Debt-Fueled AI Expansion Concerns
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Summary
Altcoins to watch saw mixed reactions as CoreWeave (NASDAQ:CRWV) shares fell 4.68% to $62.70 in premarket trading on October 15, 2026. The stock dropped 15.46% to $65.78 in the prior session, nearing its 52-week low of $60.55. Total debt and lease obligations hit $52 billion by June 2026, with Q2 net interest expenses jumping to $640 million from $267 million a year earlier. Analysts worry about financial risks, while co-founder Brannin McBee argues the debt supports growth. The fear and greed index shows heightened market anxiety.
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