CoreWeave stock has dropped 61% from its all-time high of $187, raising questions about whether the AI infrastructure provider can rebound in 2026
CoreWeave stock has suffered a substantial decline, falling 61% from its all-time high of $187 recorded on June 20, 2025. The AI infrastructure provider has dropped nearly 39% over the past three months alone, trading at approximately $72 per share. This sharp selloff raises serious questions about whether the company will rebound from these steep lows in 2026.
The Wall Street Journal described CoreWeave’s market performance as a staggering fall from market grace. The publication points to the stock’s decline as evidence of growing concerns about an AI bubble in the market. The AI infrastructure company, which went public with high expectations, now faces serious questions about its valuation.
Contributing factors to decline
A failed merger with data center provider Core Scientific, delays in infrastructure buildouts and sharp criticism from short seller Jim Chanos have triggered the selloff. CoreWeave’s core issue began when one of its prime data center providers, Core Scientific, delayed the Denton data center buildout, slated for OpenAI, due to unexpectedly heavy rain.
CoreWeave buys advanced GPUs from Nvidia and rents out computing power to major clients including OpenAI, Microsoft and Meta. The company funds data centers with heavy debt, straining cash flows and margins. Meanwhile, capital expenditures are expanding at a faster rate than revenue growth, adding to concerns about an AI bubble.
Bullish case for recovery
Despite the current downturn, CoreWeave bulls remain optimistic about future potential. Prominent hedge fund manager Cathie Wood has been leveraging the dip in CoreWeave stock and accumulating shares in ARK funds. Wedbush analyst Daniel Ives believes they stand to benefit from surging demand for AI computing power, including GPUs and specialized components, which are currently outstripping supply. He also added CoreWeave to his IVES AI 30 list heading into 2026.
Roth MKM analyst Rohit Kulkarni initiated coverage with a Buy rating and $110 price target, implying 52% upside potential from current levels. He views CoreWeave as a top-four market-share winner in the multibillion-dollar AI cloud market, which is expected to outgrow the traditional internet cloud market.
CoreWeave boasts a $55.6 billion revenue backlog, with about 40% of that, over $22 billion, coming due in the next 24 months. This means strong future cash flow from current infrastructure builds.
Bearish concerns persist
D.A. Davidson analyst Gil Luria says CoreWeave has one of the ugliest balance sheets in the technology sector. He has a Sell rating on the stock and a price target of $36, implying 50% downside potential. He noted that the company’s 4% operating margins fail to cover debt interest, casting doubt on future profits. Luria dismisses the bull case of scaling up, stating that many firms start with low margins but CoreWeave is already at scale.
Bears counter that the original valuation was disconnected from reality. They point to CoreWeave as an example of irrational exuberance in the AI sector. The company’s revenue and growth metrics haven’t changed as dramatically as its stock price. This gap between business performance and market value is at the heart of the debate.
Analyst consensus
On TipRanks, CoreWeave stock has a Moderate Buy consensus rating based on 12 Buy ratings, 10 Hold ratings and one Sell rating. The average price target of $132.33 implies 83% upside potential from current levels. Wall Street analysts have received 23 analyst ratings offering 12-month price targets for CoreWeave in the past three months. The average target stands at $132.33 with a high forecast of $180 and a low of $36.
The selloff in CoreWeave shares reflects a broader reassessment of AI companies. Investors are now scrutinizing valuations more carefully after initial excitement faded. The company’s future depends partly on whether AI infrastructure demand continues growing. If spending on AI slows down, they could face additional pressure.