What's Wrong With CoreWeave Stock?

A good way to gauge the excitement around artificial intelligence (AI) stocks is to simply look at CoreWeave (NASDAQ:CRWV) stock. The company makes money by renting out compute space and giving its customers access to Nvidia's cutting-edge AI chips. When the market is euphoric about AI, CoreWeave's generally doing fairly well. When it isn't, however, that's when the stock goes on a tailspin. The risks and opportunities aren't complex with CoreWeave. The business has tremendous opportunities due to AI, but a high debt load and lack of profitability also lead many investors to think twice about how safe the stock really is. And it's the latter that appears to be weighing on its valuation right now, as rising bond yields and concerns about interest rates have resulted in the AI stock nosediving of late. Image source: Getty Images.

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