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CoreWeave Leads Tech Sell-Off as AI Stock Plunge Deepens

BearishHigh impact
CRWV$60.99 −12.48%IREN$27.07 −10.93%AMD$531.66 −5.44%INTC$90.04 −5.59%MU$885.12 −4.95%SOX11,189.14 −3.39%

CoreWeave, Inc. (NASDAQ:CRWV) led a widespread drop across artificial intelligence and technology stocks on Friday, sliding over 11% in afternoon trading. The decline extended a 10-day retreat of 34% for the AI data center provider. Other specialized cloud operators and hardware suppliers also posted steep losses, with Advanced Micro Devices, Inc. (NASDAQ:AMD) falling nearly 5%, Intel Corporation (NASDAQ:INTC) losing over 4%, and Micron Technology, Inc. (NASDAQ:MU) dropping more than 3%. The broader PHLX Semiconductor Index (NASDAQ:SOX) fell nearly 3%.

The sharp pullback highlights growing anxiety among investors regarding the high cost of building out AI infrastructure. Persistent inflation and high interest rates have raised borrowing costs, while doubts remain over whether enterprise clients can generate enough revenue to justify massive AI spending. Software and networking companies were also caught in the selling, though analog semiconductor makers proved relatively stable.

Despite market skepticism, physical expansion in the sector continues. Recent quarterly results from major semiconductor manufacturers indicate that infrastructure construction remains unabated. Investors will be monitoring upcoming financial reports and spending plans from key cloud customers to see whether rising capital expenses begin to curb demand.

Key points

  • CoreWeave, Inc. (NASDAQ:CRWV) fell over 11% on Friday, bringing its 10-day loss to 34%.
  • Key chipmakers suffered pullbacks, including Advanced Micro Devices, Inc. (NASDAQ:AMD) down 4.88% and Intel Corporation (NASDAQ:INTC) down 4.36%.
  • The PHLX Semiconductor Index (NASDAQ:SOX) slid 2.64% as hardware, software, and networking shares fell.
  • Investor concerns stem from rising financing costs, interest rates, and uncertain return on investment for AI spending.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why are CoreWeave and other AI stocks falling?

Investors are concerned that financing AI infrastructure will become harder due to elevated interest rates and uncertainty over whether customers can generate sufficient returns on their investments.

How much did CoreWeave stock drop?

CoreWeave shares fell more than 11% on Friday and have plunged 34% over a 10-day period.

Is AI infrastructure spending slowing down?

Despite the stock market sell-off, physical buildout appears uninterrupted, as evidenced by strong quarterly earnings results from major chipmaker TSMC.