‘Once-in-a-Generation Opportunity’: CoreWeave CEO Defends Spending Plans as Stock Craters

CoreWeave CRWV -21.85% ▼ CEO Mike Intrator defended the company’s aggressive spending plans during an interview on CNBC’s Squawk on the Street. He explained that the neocloud company is intentionally investing heavily in infrastructure, even if it hurts margins in the short term, because the demand for AI computing capacity represents a “once-in-a-generation” opportunity. Indeed, Intrator emphasized that the company already has a massive backlog of orders. Nevertheless, investors sent the stock down more than 20% after the company issued weaker-than-expected revenue guidance.

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At the same time, CoreWeave announced plans to spend between $30 billion and $35 billion in 2026, far above the roughly $26.9 billion that analysts had expected. This led to new concerns about profitability, debt levels, and the sustainability of its business model. For context, the company finances purchases of high-end AI chips with borrowed money and then rents that computing power to customers. Moreover, much of its revenue comes from a small group of large clients, which adds concentration risk. Despite these worries, Intrator argued that financing conditions are actually improving rather than deteriorating.

Specifically, he said that the company’s cost of capital has fallen by about 300 basis points over the past year, translating into roughly $700 million in savings, and has dropped by about 600 basis points over two years. Even so, Wall Street expects continued volatility as the company ramps up its infrastructure spend, which could pressure margins and increase expenses. Moreover, some analysts believe that the stock may trade sideways, while others warn that if economic conditions worsen, CoreWeave shares could be hit particularly hard due to their high-risk profile.

Is CRWV Stock a Good Buy?

Turning to Wall Street, analysts have a Hold consensus rating on CRWV stock based on two Buys, 19 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CRWV price target of $64.57 per share implies 53.6% upside potential.

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