New York, January 13, 2026, 11:02 ET — Regular session
- CoreWeave shares slipped roughly 1.4% in morning trading following Monday’s sharp rally
- CEO Michael Intrator dismissed concerns about “circular financing” and GPU depreciation
- Goldman Sachs initiated coverage with a Neutral rating, citing concerns over execution risk and elevated leverage
CoreWeave (CRWV) shares slipped 1.4% to $88.67 on Tuesday, pulling back after nearly a 12% surge the day before. The jump came after management reassured investors about the lifespan of its graphics chips powering AI data centers. 1
The market is wrestling with a straightforward question tangled in complexity: how long will pricey AI hardware hold its value, and what’s the ongoing cost to keep upgrading it?
CoreWeave is caught in the middle. Its model hinges on funding vast quantities of chips and maintaining high rental utilization. Investors, meanwhile, are questioning if the current AI boom can continue to soak up supply at the price levels seen in recent transactions.
CoreWeave CEO Michael Intrator dismissed the “circular financing” claims as “ridiculous” during the Big Technology Podcast, noting Nvidia’s $300 million stake is minor compared to CoreWeave’s overall capital and valuation. He stood by the use of special purpose vehicles—entities crafted to separate project financing. Meanwhile, Chief Strategy Officer Brian Venturo highlighted a renewed contract for older Nvidia A100 chips at roughly 95% of their original price, countering concerns about rapid asset depreciation. 2
Goldman Sachs analyst Gabriela Borges initiated coverage with a Neutral rating and set an $86 price target. She noted CoreWeave’s “purpose-built architecture” gives it an advantage over major cloud players and other “neoclouds” at the premium end. However, Borges cautioned the company’s model “requires best in class execution” and flagged its “outsized debt” as a factor that could heighten volatility. 3
CoreWeave went public on Nasdaq in March 2025, positioning itself as an AI-centric cloud provider specializing in high-performance computing. 4
Shares of Nvidia slipped 0.4% on Tuesday, underscoring how concerns over the chip supply chain continue to weigh on smaller AI infrastructure firms that rely heavily on its hardware.
Traders are now weighing if Monday’s bounce will hold up or slip away, amid new analyst reports and podcast snippets clashing with the hard facts of funding costs, delivery schedules, and customer concentration.
Downside risks remain. If new chips render older GPUs obsolete faster, depreciation costs will climb and resale prices will drop. Interest expenses will keep adding up. Any dip in customer demand would hit a balance sheet already stretched with debt.
CoreWeave is slated to report earnings around Feb. 9, according to Nasdaq data. Investors will be watching closely for updates on capex, contract terms, and leverage. They’ll also be sizing up the numbers to see if GPU values really hold steady longer than skeptics think. 5
