Right. So, the stock market. It’s…a thing. Honestly, it feels a bit like dating. You think you’ve found ‘the one’ – a stock that just gets you – and then it turns out it’s got a whole lot of debt and a worrying habit of dipping at inconvenient moments. I’ve been watching CoreWeave (CRWV 6.12%) lately, and it’s been…a journey. It IPO’d in March, and for a while, it was all champagne and optimism. Then, things…complicated themselves. It’s a bit like that dress I bought for a first date – looked amazing on the hanger, less so after three hours and a questionable sushi platter.
Units of CoreWeave shares purchased: 1. Hours spent refreshing the stock ticker: countless. Number of times I’ve considered just investing in actual servers and setting up my own AI factory in the garden shed: 3. (The garden shed is, admittedly, quite small.)
CoreWeave: What is it, exactly?
Okay, so CoreWeave. It basically provides the computing power for all this AI stuff everyone’s going on about. Think of it as renting a really powerful brain instead of having to build one yourself. They have a lot of Nvidia graphics processing units (GPUs) – which are apparently the key to unlocking the AI future. Customers – big names like Meta Platforms and OpenAI – pay them to run their AI projects. It’s clever, really. It’s like Airbnb, but for artificial intelligence. And it’s been working. Triple-digit revenue growth is…impressive. Although, I’m always slightly suspicious of anything described as ‘triple-digit’.
And then there’s Nvidia. They own about 7% of CoreWeave and recently bought even more stock – a cool $2 billion worth. They’ve also committed to buying any leftover capacity through 2032. It’s a bit like a very powerful couple making a long-term commitment. Or, you know, a strategic alliance. Whatever. It’s good for CoreWeave.
The Dip. Oh, the Dip.
So, what happened? Why did the stock lose momentum? Well, investors started worrying about debt. Apparently, building all this AI infrastructure isn’t cheap. And if AI spending slows down (which, let’s be honest, is always a possibility – it’s a bit like hoping your sourdough starter will actually rise), CoreWeave could be left with a mountain of debt and a lot of unused GPUs. It’s a valid point. Debt is…unsettling. And there was also the general feeling that AI stocks had climbed too quickly. A bubble, perhaps? I’ve seen bubbles before. Mostly in bathwater. But the principle is the same.
But here’s the thing. CoreWeave didn’t stay down for long. It’s up 172% since its IPO and over 50% this year. Which is…encouraging. It’s still risky, of course. Its success depends on AI spending continuing to grow. But if the AI story plays out as expected, CoreWeave could keep soaring. I’m cautiously optimistic. Although, I’m also slightly terrified of heights.
Number of times I’ve checked my portfolio today: 17. Number of times I’ve considered selling everything and becoming a goat farmer: 2. (The goats seem much less volatile.)
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2026-01-30 02:02