From Yahoo Finance: 2025-03-27 14:45:00

Cloud-services startup CoreWeave, backed by Nvidia, plans to raise $1.5 billion from its Nasdaq listing. However, concerns arise over its heavy reliance on two customers for 77% of revenue and high capital spending needs to keep up with Nvidia’s GPU lifecycle.

Microsoft, CoreWeave’s major revenue provider, reportedly scaled back commitments due to delivery issues, leading to investor concerns. Despite CoreWeave denying the report, analysts speculate on Microsoft’s data center investment plans.

Amazon also trims near-term spending plans in line with its Q4 2024 spending. CoreWeave, now with a $12 billion debt pile, adds OpenAI as a client but faces challenges funding capital spending, which could reach $21 billion by year-end.

CoreWeave lowers its IPO price to $40 a share and shares to be sold to 37.5 million, aiming to appeal to investors amidst macroeconomic uncertainty. With AI stocks facing challenges, the market seeks certainty over stories, impacting CoreWeave’s position.

Nvidia stock, previously lifted by AI hype, now faces challenges, reflecting market fluctuations. The market demands certainty, posing challenges for CoreWeave despite its strengths. Veteran fund managers forecast the S&P 500 amidst market volatility.



Read more at Yahoo Finance: AI reality bytes Nvidia-backed CoreWeave IPO