CoreWeave Stock (NASDAQ: CRWV) Slides on AI Data-Center Bubble Fears: What’s Driving Shares on Dec. 17, 2025

CoreWeave (NASDAQ: CRWV) is back at the center of the AI-infrastructure debate on Wednesday, December 17, 2025, as investors reassess whether the enormous capital spending behind “AI factories” can translate into durable profits—or whether the sector is getting ahead of itself.

As of the latest trade, CRWV was at $65.86, down 5.24% on the day, after swinging between $63.83 and $71.28 with heavy volume.

The stock’s drop comes amid a fast-moving mix of storylines: bearish commentary about the economics of GPU-heavy data centers, concerns about leverage and execution risk, heightened attention on data-center power costs, and an ongoing narrative shift from “AI can’t build fast enough” to “AI infrastructure may be overbuilt.”

Below is a detailed roundup of the most current news, forecasts, and analysis circulating today—and what it may mean for CoreWeave shareholders heading into 2026.

What’s moving CoreWeave stock today

1) “AI infrastructure bubble” worries are hitting the whole trade—CoreWeave is the poster child

A key theme in today’s coverage: the market is increasingly sensitive to any sign that AI infrastructure buildouts could overshoot near-term demand or fail to earn attractive returns, especially when funded with large amounts of debt.

Investor’s Business Daily highlighted renewed fears of an “AI infrastructure bubble,” noting CoreWeave’s sharp slide since its late-June peak and pointing to high-profile criticism from short seller Jim Chanos as part of the pressure on the name. ^[1]

2) Analyst caution is showing up in targets and tone

One of the more concrete “forecast” datapoints investors are reacting to: Mizuho lowered its price target to $92 from $120 and kept a neutral stance, citing CoreWeave’s strong positioning in AI—while emphasizing concerns around customer concentration and near-term revenue potential. ^[2]

3) Execution risk: data-center timelines and delivery have become a market-wide trigger

CoreWeave’s model depends on bringing capacity online quickly, at scale. Recent reporting has emphasized construction/timeline issues (including a major Texas facility delay attributed to weather) as a factor that has rattled confidence. ^[3]

4) A new political/regulatory angle: lawmakers are now asking about data centers and electricity bills

Beyond markets and earnings, policy scrutiny is rising. The Guardian reported that three Democratic U.S. senators sent letters to large tech firms and data-center operators—including CoreWeave—seeking transparency on whether “energy-guzzling” data centers are contributing to higher residential electricity costs, with requested responses due January 12. ^[4]

CoreWeave in 60 seconds: what the company does—and why it’s so controversial in public markets

CoreWeave is often described as a specialized “AI cloud” provider that builds and operates GPU-rich infrastructure—largely powered by Nvidia hardware—then sells compute capacity to AI labs, hyperscalers, and enterprises.

The bull case is straightforward: demand for GPU compute is massive, and CoreWeave has become a major supplier in a world where capacity constraints can delay model training, product launches, and inference workloads.

The bear case is equally straightforward: this is one of the most capital-intensive business models in tech, where competitive advantage can erode quickly (new chips, new clusters, new deals), and where financing conditions matter immensely.

Latest financial snapshot: blistering growth, but interest costs remain heavy

CoreWeave’s most recent quarterly report (Q3 2025) underscores the split-screen nature of the story:

Revenue: $1.3647 billion (up sharply year over year) ^[5]
Net loss: $110.1 million ^[6]
Net interest expense: $310.6 million (a reminder of how central financing is to the model) ^[7]
Revenue backlog:$55.6 billion as of Sept. 30, 2025 ^[8]

On the commercial front, CoreWeave also highlighted multi-year demand signals, including:

An up to ~$14.2B multi-year deal with Meta (with an option to expand) ^[9]
An expanded OpenAI partnership, including an additional up to ~$6.5B deal, bringing total commitments up to ~$22.4B ^[10]

This combination—surging revenue and backlog, paired with significant interest burden—helps explain why CRWV trades like a “macro stock” at times: when financing sentiment shifts, the equity can move violently.

The financing headline investors are still digesting: a multi-billion-dollar convertible note deal

One of the biggest “hard news” items behind recent volatility is CoreWeave’s convertible financing.

In an SEC filing, CoreWeave disclosed that it completed a private offering of $2.5875 billion of 1.75% Convertible Senior Notes due 2031 (including the full exercise of an option for additional notes). ^[11]

Key terms investors have been focusing on include:

Interest rate: 1.75% (paid semiannually starting June 1, 2026) ^[12]
Initial conversion price: approximately $107.80 per share ^[13]
Use of capped call transactions intended to reduce dilution/offset certain conversion impacts, with an initial cap price of $215.60 ^[14]

Convertibles can be smart capital—especially when a company wants to fund growth at a lower coupon than straight debt. But the market often treats large financings as a signal: either “demand is exploding and we’re funding it,” or “cash needs are high and risk is rising.” In December, CoreWeave has been trading as though investors are debating which interpretation is closer to the truth.

CoreWeave’s post-IPO reality check: from AI darling to execution test

CoreWeave priced its IPO at $40 per share in March 2025 and began trading on Nasdaq under CRWV on March 28, 2025. ^[15]

Since then, the stock has been extraordinarily volatile. Barron’s noted that CRWV surged to $183.58 in June before dropping more than 60%, with the outlet framing 2026 as a “must-execute” year as investors scrutinize debt, delays, and the timeline to profitability. ^[16]

The volatility is visible even in basic market stats: StockAnalysis lists a 52-week range of $33.52 to $187.00, with market cap around the low-to-mid $30 billions depending on the day’s move. ^[17]

Forecasts and price targets: what analysts are (and aren’t) betting on

Consensus targets still imply huge upside—but dispersion is wide

According to TipRanks, CoreWeave’s average 12-month price target is $131.05, with forecasts ranging from $36 on the low end to $180 on the high end, and a consensus rating described as “Moderate Buy.” ^[18]

At today’s price (~$65.86), that average target would imply roughly ~99% upside—but the wide range shows analysts disagree sharply about:

how quickly margins can expand,
how durable the pricing environment will be,
and whether the cost of capital stays manageable.

StockAnalysis similarly shows an analyst “price target” around $127.84 (roughly ~94% above today’s level). ^[19]

The profitability timeline is the real debate

A major point from recent commentary is that revenue growth alone may not satisfy public market investors if free cash flow remains deeply negative and interest costs stay elevated. Barron’s summarized the skepticism bluntly: CoreWeave may need a near-perfect 2026, with some analysts expecting profitability to arrive later rather than sooner. ^[20]

Bull case vs. bear case: the catalysts investors are weighing right now

Bull case: backlog + mega-deals + “AI compute scarcity”

The constructive thesis—supported by CoreWeave’s own disclosures—centers on:

A $55.6B backlog that suggests multi-year demand visibility ^[21]
Large customer commitments (including Meta and OpenAI-related expansions) ^[22]
The idea that “GPU scarcity” remains real, and specialized providers can win by delivering faster and with higher performance.

Cathie Wood’s ARK has also been buying the dip, with Barron’s reporting a roughly $9.9 million CoreWeave purchase amid broader crypto/AI-linked buying. ^[23]

Bear case: leverage, depreciation/obsolescence, and the “landlord problem”

The skeptical view focuses on structural risks:

Debt and financing sensitivity (higher rates, tighter credit, less appetite for levered growth) ^[24]
Hardware turnover: GPUs evolve quickly; cluster “best-in-class” can become “last generation” fast (meaning capex can remain permanently high) ^[25]
Execution risk: if large sites slip, revenue timing can slip, too ^[26]
Policy and power constraints: electricity pricing and grid capacity are now mainstream political topics, and operators are being asked to disclose more about energy use and cost sharing ^[27]

One more overhang investors still reference: the failed Core Scientific acquisition

CoreWeave’s attempt to acquire Core Scientific became part of the broader narrative about AI data-center capital cycles. Reuters reported that Core Scientific terminated the roughly $9 billion merger deal after shareholders voted it down, and CoreWeave later indicated it would continue the commercial partnership. ^[28]

While the deal is old news in calendar time, it remains relevant to sentiment because it reinforced investor concerns about valuation, financing, and strategic urgency in the AI infrastructure land grab.

What to watch next for CoreWeave stock in early 2026

If CRWV remains a headline stock, it’s likely to be driven by a handful of recurring “checkpoints”:

Data-center delivery updates
Markets want evidence that timing issues are contained and that new capacity is coming online on schedule. ^[29]
Cost of capital and balance-sheet strategy
Investors will watch how the convertible proceeds, future financing needs, and interest burden evolve. ^[30]
Customer concentration and renewal/expansion cadence
Big commitments are bullish, but the market also wants proof the backlog can diversify and convert smoothly into revenue. ^[31]
Policy pressure around electricity and data centers
The Senate inquiry adds a new category of risk: public disclosure, cost allocation, and potential state/local regulatory responses. ^[32]

Bottom line on Dec. 17, 2025: CoreWeave is trading like a referendum on AI infrastructure economics

CoreWeave’s story hasn’t changed overnight: demand for compute is enormous, and the company is clearly a major player in supplying it. The question driving today’s headlines is whether the financial structure required to build AI infrastructure at hyperscale can produce sustainable shareholder returns—or whether the industry is nearing the point where capital becomes more selective.

CRWV’s next leg up (or down) will likely hinge less on whether AI is big—and more on whether CoreWeave can prove its buildout is on time, financeable, and profitable on a timeline public-market investors will accept.

References

CoreWeave Stock (NASDAQ: CRWV) Slides on AI Data-Center Bubble Fears: What’s Driving Shares on Dec. 17, 2025—and What Wall Street Forecasts Next