According to Woofun AI, CoreWeave (CRWV.US) stock continued its downward trend, reaching a new low of $54.25, the lowest level since May last year, and is nearly 70% below its all-time high, sparking market concerns that it may fall below the key $50 support level.
The current AI stock bubble index has risen to an extreme level of 74 points, reflecting infrastructure investments and company valuations far exceeding actual disclosed revenues. Ray Dalio has warned that rising interest rates could burst the bubble, while Ken Griffin has compared it to the dot-com bubble.
Woofun AI's compiled data shows that a Gartner report indicates new cloud service companies face higher risks than large cloud computing enterprises, with over $3.5 trillion in artificial intelligence infrastructure investments potentially at risk of impairment by the end of 2030.
These macroeconomic concerns have directly translated into short-selling pressure on CoreWeave (CRWV.US), with its short interest rising to 15%, the yield on its 2031 bonds climbing to 15%, and the company’s total debt approaching $30 billion, while capital expenditures are expected to remain high.
The worsening competitive landscape has intensified valuation pressures. Nearly all Bitcoin mining companies have entered the new cloud services sector: RUM Group (RUM.US) (formerly Rumble) entered through the acquisition of Northern Data; SpaceX (SPCX.US) secured orders from Google (GOOGL.US) and Anthropic; and private companies such as Meta (META.US) (formerly Facebook), Lambda, Nscale, and Firmus are also vying for market share. From a technical perspective, CRWV’s stock price has fallen below the $64 neckline support of a "head and shoulders" pattern, broken through the 50-day moving average, and is now below the strong support and reversal level of $75 indicated by the Murrey Math Lines analysis tool, remaining below the trend indicator.
If the $50 ultimate support level is breached, the stock price could decline further to the oversold zone at $37.50. This represents a severe stress test of market valuation logic for AI infrastructure since the dot-com bubble burst, as dual pressures from high leverage and new entrants are reshaping industry risk pricing.