Nvidia-Backed CoreWeave's Stock Plunges on Weak Forecast, Even as Its AI Backlog Grows

ETHReserveBank · 2026-02-27T19:43:45+00:00

CoreWeave's shares fell nearly 20% after a disappointing revenue forecast for the current quarter, despite strong prior sales. Analysts remain cautiously optimistic due to a substantial revenue backlog and growth potential.

ETHReserveBank

2026-02-27 19:43:45

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Key Takeaways

CoreWeave shares tumbled after the cloud computing company issued a weaker-than-expected revenue outlook for the current quarter.
Still, the Nvidia-backed firm’s stock has nearly doubled from its IPO price last year.

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Nvidia-backed CoreWeave’s stock could be set to lose a fifth of its value in just one session.

Shares of CoreWeave (CRWV) were down nearly 20% in recent trading after the AI infrastructure provider issued a soft outlook, overshadowing better-than-anticipated sales.

The cloud computing company said it expects current-quarter revenue of $1.9 billion to $2 billion, well below the $2.29 billion analysts polled by Visible Alpha were looking for. The Livingston, N.J.-based company narrowly topped revenue estimates for the fourth quarter, but posted a wider-than-expected loss.

Why This Is Significant

CoreWeave’s softer-than-expected forecast could add fuel to worries about uneven AI spending growth and weak sentiment surrounding heavily AI-exposed stocks.

Even so, some analysts said they remain bullish on the company’s longer-term growth, citing a rapidly expanding revenue backlog and plans to raise capacity.

Citi analysts, who have a “buy” rating and $135 target for the shares, wrote CoreWeave’s growth story “remains very much intact,” pointing to its over $60 billion backlog, among other things. They also said they see its top-line revisions for this year and next moving higher.

While ratings are still in flux, most analysts tracked by Visible Alpha lean more bullish than bearish on the stock. The Street’s consensus target at around $115 would suggest nearly 50% upside from the stock’s recent levels.

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Even with today’s plunge, shares of CoreWeave remain up about 8% for 2026 and have nearly doubled from their initial public offering price last year.

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