CoreWeave Plans $30–35B Capex While Shares Dive 19% on Sell-Off
CoreWeave plans to invest $30–35 billion in 2026, topping the $26.9 billion consensus estimate, aiming to expand AI compute capacity against a backlog of demand. Shares plunged 19% to $79.56 after stock dropped further 4% premarket following a broader AI infrastructure sell-off and capex sustainability concerns, despite CoreWeave’s 300 bps cost of capital reduction saving roughly $700 million.
1. Capex Expansion
CoreWeave announced plans to invest $30 billion to $35 billion in 2026, surpassing analyst expectations of roughly $26.9 billion. Management cited a once-in-a-generation surge in AI compute demand and a substantial customer backlog driving the decision to rapidly expand capacity.
2. Financial Impacts
The company intends to finance high-end chip purchases largely through borrowing and leasing, raising questions about margin pressures and elevated debt levels. Improved financing conditions have trimmed CoreWeave’s cost of capital by about 300 basis points over the past year, translating into roughly $700 million in interest cost savings.
3. Stock Market Reaction
Shares plummeted 19% to $79.56 on Thursday, weighed by a sector-wide AI infrastructure sell-off and investor apprehension over sustainable capital spending. The stock fell an additional 4% in pre-market trading as concerns persisted about the long-term return on heavy capex.
4. Institutional Buying
Institutional investors boosted exposure to the company, including a roughly $16 million purchase of 199,000 shares by a prominent AI-focused fund. This marks a continuation of buying activity that commenced in December, highlighting confidence in CoreWeave’s growth potential.