CoreWeave’s market confidence erodes as bond yields spike and stock sinks

CoreWeave CEO Michael Intrator appears after the company's initial public offering at the Nasdaq MarketSite in New York on March 28, 2025.Michael Nagle | Bloomberg | Getty ImagesCoreWeave is facing a crisis of confidence on Wall Street that's playing out in real time among equity and bond investors. With interest rates spiking and AI buildout concerns mounting, debt-heavy neoclouds like CoreWeave are being viewed by many market participants as the most vulnerable trade in the artificial intelligence space."Sentiment is decidedly negative," Andrew Keches, a credit analyst at Barclays, wrote in a note to clients on Tuesday, referring broadly to corporate debt in tech. Keches highlighted the "speed at which AI vibes are shifting on a day-to-day basis." CoreWeave, which went public in March of last year and reached a peak market cap of about $90 billion three months later, is now valued at roughly $34 billion, with its stock down 29% this month. Its unsecured debt, meanwhile, is sporting a yield of about 15%. Stock Chart IconStock chart iconCoreWeave's stock move this monthThe spread on CoreWeave's five-year credit default swaps, which are insurance against default, is up 164% in the p...