Jefferies Calls CoreWeave Sell-Off Overdone as Shares Fall 11%

CoreWeave shares fell about 11% by 12:38 p.m. ET (16:38 UTC) Friday. Jefferies analyst Brent Thill called the sell-off overdone, saying capacity prices were rising faster than the AI cloud provider’s borrowing costs.

CoreWeave provides cloud infrastructure for AI workloads. Friday’s decline followed a nearly 5% rebound in CoreWeave shares Thursday, when yields on two of the company’s bonds recovered from earlier levels.

Thill acknowledged that new borrowing could come at higher rates. “Pricing for capacity is rising much faster in the near term,” he wrote.

Data center demand was robust and had improved in recent months. CoreWeave’s capacity is sold under long-term take-or-pay contracts.

Questions persist over how those contract terms would hold up in disputes and whether contracted backlog will turn into revenue. Other neocloud stocks also fell in midday trading, with Nebius down 9% and IREN down 8%.