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    Home»Business»CoreWeave’s stock price is sinking despite AI mania and soaring revenue. Here is the one reason why
    Business 4 Mins Read

    CoreWeave’s stock price is sinking despite AI mania and soaring revenue. Here is the one reason why

    Business 4 Mins Read
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    Shares in CoreWeave Inc are sinking this morning after the company revealed its third-quarter 2025 results yesterday.

    While the New Jersey-based AI infrastructure firm more than doubled its revenue from the same quarter a year earlier, it also revised down its full fiscal 2025 forecast, sending its stock price tumbling.

    Here’s what you need to know.

    What’s happened?

    Yesterday, AI infrastructure company CoreWeave announced financial results for its Q3 2025, which ended on September 30.

    There was some good news for the quarter, including revenue of nearly $1.4 billion (up 134% year over year) and a revenue backlog of $55.6 billion (up 271% YoY). Revenue backlog is a metric that includes future revenue that CoreWeave expects from existing client deals.

    CoreWeave’s main business is leasing AI hardware—mainly servers powered by Nvidia’s AI GPUs—to AI software companies. Some of CoreWeave’s most prominent customers include OpenAI and Meta. 

    However, that means CoreWeave’s future growth depends on two primary factors: growing its client base and building massive data centers to house advanced AI servers to meet client demands.

    It’s that latter factor that has caused CoreWeave’s stock price problems today.

    Data center delay necessitates revised 2025 forecast

    Unfortunately for investors, when CoreWeave announced its strong Q3 2025 revenue numbers, the company also said that it was revising down its full 2025 fiscal year guidance.

    As noted by FXLeaders, CoreWeave said it now forecasts fiscal 2025 revenue of between $5.05 billion and $5.15 billion. The company had previously forecast fiscal 2025 revenues of up to $5.35 billion.

    The reduced revenue forecast is due to a data center delay.

    During the company’s earnings call, CEO Mike Intrator revealed that the development of a third-party data center on which CoreWeave was counting is behind schedule.

    “There is a problem at one data center that’s impacting us, but there are [41 data centers] in our portfolio,” Intrator said, adding that the “overwhelming majority” of the data center delay should be resolved within the company’s first quarter of fiscal 2026, which correlates to January through March of next year.

    That data center delay will impact one of the company’s clients. As reported by CNBC, CoreWeave did not name the client but said the client had agreed to keep the full value of the contract intact, meaning CoreWeave will not lose out on that revenue backlog; it will merely be delayed.

    In addition to revising down its full fiscal 2025 revenue forecast, CoreWeave said it expects to end 2025 with adjusted operating income of between $690 million and $720 million and capital expenditures of $12 billion to $14 billion.

    CoreWeave stock sinks nearly 10%

    Despite CoreWeave’s assertion that the data center issue isn’t a long-term problem, the delay and disappointing guidance are affecting CoreWeave’s stock (Nasdaq: CRWV),which sank in premarket trading on Tuesday.

    As of the time of this writing, CRWV shares are currently trading down almost 10% to $95.54 in premarket. That’s a low CRWV has not seen since September.

    CoreWeave went public in March of this year.

    Despite lowering its IPO price right before its Nasdaq debut, the company’s stock has skyrocketed in 2025. In its March IPO, CRWV stock began trading at $40 per share. By June, shares had surged to $187. As of yesterday’s market close, CRWV shares had risen more than 170% for the year.

    But CoreWeave’s double-digit stock decline this morning highlights the fact that investors are increasingly on edge about the valuations and lofty stock prices of companies operating in the AI space.

    There are growing concerns about an “AI bubble” that could mirror the Dotcom bubble of the early 2000s.

    CoreWeave’s data center delay isn’t a sign of any such bubble in itself, but the company’s stock price fall may indicate that investor nerves are high when AI companies don’t meet expectations.



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