Update: CoreWeave Equity Could Go to Zero if AI Cycle Sputters, D.A. Davidson's Luria Says
MT newswire2026/10/14 21:25Bitget offers one-stop trading for cryptocurrencies, stocks, and gold. Trade now!
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05:25 PM EDT, 10/14/2026 (MT Newswires) -- (Updates to add more information about the sector) CoreWeave (CRWV) would likely be the first company to fail if the artificial intelligence cycle turns, with its equity value falling to zero, D.A. Davidson analyst Gil Luria said on the Prof G Markets podcast. Luria called the company a "poster child for bad behavior," saying it borrows at about 9% to fund a speculative asset while earning returns of around 1%, and warned it could miss interest payments if conditions worsen. Its unsecured notes yielded about 15% amid a debt selloff, according to the host. On the wider sector, Luria said investor jitters reflect doubts the boom can last, even as companies across the AI value chain report strong results and raised guidance. He expects AI investment returns to turn positive over the next 12 months and said the ecosystem would remain sustainable even if OpenAI and Anthropic, which he called highly speculative, falter, since other models still need GPUs, CPUs and memory. He said the market is pricing Micron, NVIDIA, Broadcom and SK Hynix as if the cycle is over, calling it a "big dislocation," and named them among his preferred stocks along with Palantir, Snowflake, Datadog, Shopify and CrowdStrike. He does not like CoreWeave, C3.ai and Cerebras.
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