CoreWeave said most of the planned capacity at its Copenhagen data center is now operational, helping lift the AI infrastructure company’s shares by more than 6% in Tuesday morning trading. The move in the stock came even as investors continued to question the company’s ability to manage its debt load. Some of CoreWeave’s bonds fell in price, pushing their implied annualized yield to 15.76%.
The debt debate also drew public commentary from CNBC host Jim Cramer, who wrote on X that if Nvidia CEO Jensen Huang truly believes CoreWeave is financially sound, Nvidia should buy the company’s high-yield bonds and share the risk. Earlier this month, Huang had defended CoreWeave, saying he remained optimistic about the company and that its cost of capital was declining.
Despite the debt concerns, Wall Street analysts remain broadly constructive on the stock. TipRanks data shows that 22 of 30 analysts rate CoreWeave a buy, with an average 12-month price target of $130.92.
CoreWeave said most of the planned capacity at its Copenhagen data center has been brought online, and the AI infrastructure company’s shares rose more than 6% in Tuesday morning trading.
Investor concern over the company’s ability to repay debt, however, has not gone away. The market price of some of its bonds fell, pushing the implied annualized yield to 15.76%.
Cramer challenges Jensen Huang on X
CNBC host Jim Cramer wrote on X that Nvidia CEO Jensen Huang should back that view with capital. Cramer said that if Huang believes CoreWeave is in good financial shape, Nvidia should buy its high-yield bonds and take on part of the risk.
Earlier this month, Huang defended CoreWeave, saying he was optimistic about the company and that its cost of capital was falling.
Analysts remain broadly positive
Debt concerns remain in focus, but Wall Street analysts are still largely positive on the stock. According to TipRanks, 22 of 30 analysts recommend buying CoreWeave, and the average 12-month price target stands at $130.92.
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