CoreWeave Inc., a company specializing in artificial intelligence, has seen its initial public offering (IPO) met with skepticism from investors on Wall Street. However, analysts argue that the negative reaction is not solely due to concerns about the long-term viability of AI spending.
According to one expert, CoreWeave’s business model appears as “nothing more than a highly leveraged, off-balance-sheet arrangement for Nvidia.” This suggests that investors are specifically targeting CoreWeave’s financials and valuation rather than the AI sector as a whole.
Source: https://www.marketwatch.com/story/coreweaves-stock-gets-jeered-in-its-wall-street-debut-11d32b17