CoreWeave Inc. (NASDAQ:CRWV) stock fell more than 6% in Thursday's premarket trading, giving back some of Wednesday's 24.71% surge following upbeat quarterly results.
The pullback came as technology stocks faced broader pressure. Nasdaq futures fell 0.79%, while S&P 500 futures declined 0.39%.
Despite the decline, analysts highlighted strong artificial intelligence demand and improving financing options. However, concerns remain over the company's heavy spending and the broader technology sector.
AI Demand Exceeds Available Capacity
CEO Michael Intrator told CNBC on Wednesday that demand for AI infrastructure remains exceptionally strong.
CoreWeave has 10 times more demand than its remaining 2027 capacity and several times more demand than available capacity for 2028.
Intrator also said the company has secured about $9 billion in customer prepayments and deposits.
He expects upcoming investment-grade financing to carry an interest rate of 7% to 7.5%, reducing reliance on expensive debt.
Wall Street Sees Improving Financial Outlook
CreditSights analyst Jordan Chalfin maintained a Buy recommendation on CoreWeave bonds, citing attractive yields and strong fundamentals.
He told CNBC on Thursday that improved pricing and margins could shorten the company's cumulative free-cash-flow break-even timeline to two to three years.
Meanwhile, Rosenblatt Securities analyst John McPeake said CoreWeave's results eased concerns about funding its AI expansion.
He expects profitability in 2028, followed by positive free cash flow within one to two years.
Evercore ISI analyst Amit Daryanani told CNBC that 2027 financing appears largely secured.
He also highlighted approximately $10 billion in potential revenue from older GPUs, reflecting sustained demand for computing capacity.
Citi Bullish, Piper Sandler Cautious
Citi analyst Tyler Radke maintained a Buy rating and $128 price forecast.
He told CNBC that improving financing, capacity deployment and pricing could strengthen cash flow in 2027 and earnings after 2028.
However, Piper Sandler technical strategist Craig Johnson described Wednesday's rebound as a relief rally within a broader semiconductor bear market.
He remains cautious on technology stocks as investors shift toward health care, energy and financials.
Technical Indicators Signal Weakness
CoreWeave shares traded near their 20-day simple moving average (SMA) of $56.06. However, the stock remained 22.6% below its 50-day SMA of $73.71 and 36.2% below its 200-day SMA of $89.47.
The bearish trend has persisted since July, when the 50-day SMA fell below the 200-day SMA, forming a death cross.
Meanwhile, the relative strength index (RSI) stood at 50, indicating neutral momentum.
Traders are watching $64.50 as a key resistance level. A sustained move above that level could signal improving short-term momentum.
CRWV Stock Price Activity: CoreWeave shares were down 6.37% at $56.90 during premarket trading on Thursday, according to market data.
