CoreWeave Slumps 10% After Q1 Revenue Miss and 25% Capex Jump
CoreWeave's stock plunged 10% after Q1 revenue of $95 million missed the $100 million analyst consensus by 5%. The company cut Q2 revenue guidance by 20% to $120 million and said capital expenditures will rise 25% to $75 million for GPU capacity expansion.
1. First-Quarter Revenue and Stock Reaction
CoreWeave reported Q1 revenue of $95 million, falling 5% short of the $100 million consensus. The revenue miss triggered a 10% drop in the share price as investors questioned near-term growth momentum in the GPU computing market.
2. Revised Second-Quarter Guidance
Management lowered Q2 revenue guidance by 20%, setting a midpoint of $120 million versus the prior forecast of $150 million. The revision reflects softer demand from key hyperscale and AI services customers during the current quarter.
3. Increased Capital Expenditure Plan
The company plans to boost capital spending by 25% to $75 million, up from $60 million last year. Funds will be directed toward expanding GPU infrastructure and data-center capacity to support longer-term AI workload growth.