Dan Ives Calls CoreWeave Selloff ‘Way Overdone,’ Says Hyperscaler Earnings Will Back AI Spending — CRWV Stock Plunges Near 12-Month Low

Top analyst Dan Ives categorized investor panic surrounding CoreWeave Inc. (NASDAQ:CRWV) as “way overdone” as the company’s shares registered the biggest single-day decline in about eight months. Ives expects upcoming hyperscaler earnings to reinforce the trajectory of AI infrastructure spending rather than challenge it.

Ives Rejects ‘Apocalypse’ Fears

In a post on X, Ives wrote that he expects upcoming hyperscaler earnings to “reinforce the upward trajectory rather than challenge it.” He compared the current market reaction to previous industry panics, stating that the CoreWeave concerns “remind us of the Saas apocalypse fears earlier this year.”

His comments come as CoreWeave stock experienced a steep decline on Wednesday. The stock fell 5.93% to $61.88 in Wednesday after-hours trading, following a 15.46% drop during the regular session. The share price is now approaching its 52-week low of $60.55, having fallen 50.93% over the past 12 months.

Mounting Debt and Analyst Warnings

The sell-off follows increased scrutiny over CoreWeave’s financing. D.A. Davidson analyst Gil Luria warned that if the AI investment cycle turns, “The equity value is going to be zero.” Luria noted the company is borrowing at approximately 9% while earning returns of around 1%.

At the end of June, CoreWeave’s combined debt and lease obligations totaled roughly $52 billion. The company reported $640 million in second-quarter net interest expense, up from $267 million the previous year.

The financing concerns gained wider attention when venture capitalist Chamath Palihapitiya warned of an AI “private credit bubble,” and Elon Musk replied “Yikes” to a chart showing CoreWeave’s bond yields hitting 15%.

CoreWeave Defends Expansion Strategy

CoreWeave co-founder Brannin McBee pushed back against the debt concerns, stating that the heavy borrowing is for expansion rather than a sign of business weakness.

McBee noted the company is currently seeking cheaper funding from insurers. Defending the company’s financial position, McBee stated that if CoreWeave stopped building infrastructure today, it would be “immensely cash-flow positive.”

How Has CRWV Performed in 2026?

The stock was 3.47% lower in overnight trading. It is down 50.93% over the last year, 8.14% year-to-date, and lower by 20.73% over the last month. The stock closed down 15.46% at $65.78 on Wednesday.

Benzinga’s Edge Stock Rankings indicate that CRWV maintains a weak price trend in the short, medium, and long terms.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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