After steep sell-off, Jensen Huang and BofA help CoreWeave shares rebound

CoreWeave (CRWV), one of the leading neocloud platforms central to the AI data center buildout, lost more than a quarter of its value this week before Nvidia CEO Jensen Huang righted the ship by saying he had no worries about the company's financial health.

Rising Treasury yields and expectations of further rate hikes from the Federal Reserve (Fed) over the next year led investors to worry that CoreWeave might stumble eventually as it already has a $50 billion debt load and requires tens of billions in annual debt issuance to continue operations. Credit default swap spreads for CoreWeave surged above 1,000 bps in the middle of the week before Huang made his positive comments while at an event in Sweden.

Despite financial analysts relaying that CoreWeave borrowing at 9% and getting a return near 5% from renting its compute was destroying value, Huang said that the neocloud's cost of capital is decreasing as time goes by. Huang also said he didn't think CoreWeave would require a rescue package from Nvidia, which already owns about 10% of the company.

That news helped improve sentiment on the stock. After falling 15% on Wednesday and dropping further in Thursday's premarket, CRWV stock closed up nearly 6% on Thursday afternoon.

The stock was also helped by a positive client note from Bank of America (BofA). Analyst Tal Liani reiterated the bank's $140 price target on CoreWeave shares and raised the projected growth rate for revenue over the next two years. BofA now thinks revenue will climb 105% in 2027 and 63% in 2028.

CoreWeave has raised more than $35 billion in 2026 through chip-backed loans, high-yield junk bonds, convertible bonds, and share sales. The question is whether it can continue to raise debt at competitive terms to remain a leading neocloud.

Research Gartner wrote in a report earlier this week that it believes 80% of neoclouds will get taken over by competitors or hyperscalers by 2030.

"What will the next dollar of growth cost? This has long been a concern of ours," Bernstein analysts wrote in a client note. “CoreWeave does not just need customers willing to buy the compute. It needs lenders willing to fund the hardware on terms that leave something attractive for shareholders.”