Updated: CoreWeave Raises Revenue Forecasts, AI Demand Unfazed by Growing Doubts

Added performance forecast, capital expenditure details, and unfinished order revenue

Reuters, November 10 - CoreWeave (CRWV.O) reported quarterly revenue on Tuesday that exceeded Wall Street expectations and raised its annual forecast, indicating strong demand for its cloud services and easing concerns following a sharp drop in its share price due to the company's massive debt.

In highly volatile after-hours trading, the company’s share price most recently fell by about 4%, as investors weighed surging revenue against concerns over increased annual spending targets.

Last month, CoreWeave became a focal point of growing concerns about an AI bubble. Investors worried that with rising interest rates, the company had borrowed heavily to purchase chips, land, and energy for AI data centers—assets that generate little or no return before they are leased out.

Over the past month, its share price plunged by more than 40%, with this selloff triggering a broader crisis of confidence across the AI sector.

Earlier in the day, AI giant Anthropic kicked off its roadshow (link), with a targeted stock offering valuation lower than previously expected.

According to data compiled by London Stock Exchange Group (LSEG), CoreWeave, supported by Nvidia and valued at $27 billion, has never made a profit. As of the end of September, its total debt was about $46.9 billion.

CoreWeave CEO Mike Intrator attempted to allay some concerns on Tuesday, revealing that the AI cloud service provider has $9 billion in customer prepayments and deposits expected to be received within the next three months.

“Customer contracts come first, investments second. Since CoreWeave’s investments are tied to committed demand, lenders have tangible collateral for their loans, and clients typically help fund infrastructure buildouts,” he said in a statement.

As of the end of September, CoreWeave had signed backlog revenue of $132.5 billion, up from $104 billion at the end of June.

Meanwhile, its quarterly capital expenditure jumped to $14.5 billion from $9.4 billion in the previous quarter.

Recent earnings from the hyperscale cloud providers also indicate delays in data center projects and slowing capital expenditure growth. CoreWeave boasts a star-studded client list, including Microsoft MSFT.O, Meta META.O, OpenAI, and Anthropic.

CoreWeave now expects 2026 revenue to be between $13 billion and $13.3 billion, up from an earlier forecast of $12.4 billion to $13.2 billion. The company also raised the lower end of its annual spending target by $2 billion, with current expectations for spending to be between $37 billion and $39 billion.

According to London Stock Exchange Group (LSEG) data, the company’s third-quarter revenue soared nearly 170% to $3.66 billion, exceeding expectations of $3.55 billion, while its loss per share was $0.95, below the market’s expectation of $1.16.

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