CoreWeave Is Projected to Have a 6. 3x Gross Leverage Ratio by Year End. The Market Is Worried About the Neocloud's Balance Sheet

Investor concerns are starting to weigh on some artificial intelligence stocks, particularly those trading at high valuations and lacking fortress balance sheets to navigate what could become a very difficult environment if funding dries up and the AI trade hits a snag. CoreWeave 's (NASDAQ: CRWV) stock nose-dived nearly 15. 5% on Oct. 14 on account of these concerns. The neocloud player has piled on debt to build out data centers to power the AI revolution . However, soaring bond yields have raised the cost of capital, leading investors to increasingly believe that capital markets for these AI stories could potentially freeze up, or at least make it more difficult to raise funding.