CoreWeave shares fell over 25% this week, marking the company's worst performance in nearly a year. Bond yields surged to 15% earlier in the week, sparking investor concerns over the debt used to fund AI infrastructure.
Wedbush analyst Dan Ives described the sell-off as a false narrative and a buying opportunity during a Bloomberg interview. Ives noted that underlying AI demand and the company's project backlog remain strong.
Jefferies reiterated a Buy rating on the stock. The firm stated that the market reaction to rising debt costs is excessive and ignores CoreWeave's solid fundamentals and revenue backlog.