CoreWeave shares decline amid rising debt concerns

CoreWeave, a GPU cloud provider specializing in artificial intelligence workloads, experienced a significant stock decline in mid-October 2026. Shares fell more than 15% in a single day and nearly 25% over the week ending October 16, driven by investor concerns regarding the company’s balance sheet.

The company carries approximately $50 billion in debt, largely used to fund aggressive data center and chip acquisitions. Despite rapid growth, with revenue projected to reach between $12.4 billion and $13.2 billion this year, CoreWeave reported a net loss of $1.2 billion in 2025. Capital expenditure guidance for 2026 remains high, estimated at $35 billion to $39 billion.

Market volatility has extended to the bond market, with yields on CoreWeave’s 2030, 2031, and 2032 notes climbing toward 15-16%. Additionally, credit default swap pricing indicated a market-implied probability of default of roughly 60% within the next five years. This follows a period of high valuation for the company, which saw its stock peak at approximately $183 in June 2025 after its March 2025 IPO.