CoreWeave (NASDAQ: CRWV), an artificial intelligence (AI) infrastructure provider closely backed by Nvidia (NASDAQ: NVDA), saw its stock tumble nearly 10% in pre-market trading on Tuesday.
The decline came despite CoreWeave posting better-than-expected quarterly results. At press time, the shares were trading at $105, after rallying 164% since its March IPO. In pre-market trading CRWV was down 9.57% to around $95.
The company reported revenue of $1.36 billion for the third quarter of 2025, surpassing Wall Street’s $1.29 billion forecast. Adjusted operating income reached $217.15 million, topping expectations of $177.2 million. CoreWeave also narrowed its adjusted EPS loss to $0.22 per share, better than the anticipated $0.40 loss.
Despite these figures, investor sentiment turned negative after management disclosed that a third-party developer partner is behind schedule in building new data center capacity.
The delay casts uncertainty on the company’s ability to meet soaring AI demand, which management describes as “far exceeding” available supply.
The company’s full-year 2025 revenue guidance of $5.05 billion to $5.15 billion falls short of analysts’ $5.3 billion consensus, signaling caution.
Notably, CoreWeave has continued to secure high-profile deals, including a $14 billion AI compute pact with Meta, an expanded partnership with OpenAI, and a $6.3 billion agreement with Nvidia for unused cloud capacity.
Its backlog of contracted work has surged to $55.6 billion, nearly double from the previous quarter. However, delays in data center buildout could slow revenue recognition.
Wall Street cautious on CoreWeave stock
On the other hand, Wall Street analysts remain divided on the stock. For instance, DA Davidson reiterated an ‘Underperform’ rating with a $36 price target, highlighting CoreWeave’s ongoing unprofitability, diluted EPS over the last 12 months stands at -$3.82, with projected losses of -$1.24 per share for 2025. The firm noted fundamental concerns, stating it “continues to believe this business is not worth scaling.”
At the same time, JPMorgan analyst Mark Murphy downgraded CoreWeave from ‘Overweight’ to ‘Neutral’ and lowered its price target to $110 from $135, citing mixed signals from its FQ3 results. According to the bank, while CoreWeave’s revenue backlog nearly doubled, customer additions highlight long-term AI growth potential, supply chain delays at a third-party data center provider are pushing some revenue into Q4, prompting a more cautious near-term outlook.
Morgan Stanley analyst Keith Weiss offered a more balanced perspective, noting that CoreWeave’s large contracts with Nvidia, Meta, and OpenAI validate its position in the rapidly expanding GPU market. However, he cautioned that execution challenges in a constrained environment remain a key risk, suggesting the recent pullback could present a potential entry point for long-term investors.
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