CoreWeave's $35 Billion CapEx Plan Triggers Stock Slump Amid Funding Fears

Key Facts

1CoreWeave plans $30–35 billion in capital expenditure for 2026.

2The company's capital expenditure in 2025 was $14.9 billion.

3The stock price dropped from the high $90s to the mid-$70s due to funding concerns.

4Q1 interest expense guidance is projected between $510 million and $590 million.

CoreWeave shares experienced a significant decline, dropping from the high $90s to the mid-$70s, as investors reacted to the company's aggressive expansion plans. The specialized cloud provider announced a massive capital expenditure (CapEx) target of $30 billion to $35 billion for 2026, more than doubling its 2025 spend of $14.9 billion. This surge in planned spending has raised alarms regarding the company's capital structure and the massive debt levels required to fund such rapid AI infrastructure growth. Adding to the pressure, the company projected Q1 interest expenses between $510 million and $590 million, highlighting the rising cost of its financial leverage. While demand for AI infrastructure remains robust, the market's skeptical reaction underscores growing concerns over the sustainability of high-leverage growth models. Analysts suggest that the financial burden of scaling at this pace could weigh on the stock's performance and investor sentiment in the near term.