AI Cloud Leader Faces Growth Challenges Despite Strong Q3 Earnings
CoreWeave’s shares extended their recent decline after the company issued a weak fourth-quarter outlook due to ongoing data center construction delays and fallout from its rejected merger with Core Scientific. The AI infrastructure provider’s stock fell 9% in pre-market trading to $96, marking its first dip below $100 since September.
Strong Q3, But Weaker Guidance
Despite delivering better-than-expected third-quarter results — reporting $1.36 billion in revenue and a $0.22 per-share loss, both ahead of forecasts — CoreWeave revised its full-year guidance lower. The downgrade reflects setbacks tied to third-party data center developers struggling with supply-chain disruptions and construction bottlenecks.
CEO Michael Intrator emphasized during the earnings call that demand for CoreWeave’s AI cloud platform remains exceptionally strong, but industry-wide challenges are holding back expansion. “We are experiencing relentless demand for our platform, but data center developers across the industry are enduring unprecedented pressure across supply chains. This impacts fourth-quarter expectations,” Intrator stated.
Impact of the Core Scientific Fallout
CoreWeave’s downtrend has deepened since Core Scientific shareholders rejected the proposed merger last month, wiping roughly 20% off the company’s market value. Intrator said the decision would not derail long-term growth, explaining that “while the deal made sense strategically for both companies, the valuation required by their shareholders was simply not a price that was appropriate for CoreWeave.”
He added that the partnership with Core Scientific will continue, noting that the companies still collaborate on about 590 megawatts of leased capacity for AI and cloud computing operations.
Expanding Despite Industry Pressures
CoreWeave continues to expand its global data center footprint, recently reaching 2.9 gigawatts of contracted power and announcing new infrastructure projects across Europe. However, analysts caution that persistent supply-chain delays and execution risks could weigh on short-term performance.
Market observers say the long-term outlook for AI cloud infrastructure remains strong, but investors may remain cautious until CoreWeave demonstrates consistent progress on its capacity expansion and delivery timelines.
The company’s performance in the coming quarters will determine whether the current weakness marks a temporary pause — or the start of a deeper correction in the high-growth AI infrastructure sector.
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