Financing concerns appear to be weighing on the U.S. AI infrastructure boom. CoreWeave and Nebius each fell more than 25% over the week, while the S&P 500 and Nasdaq also finished the week lower.
Baird technology strategist Ted Mortonson placed CoreWeave, Nebius and Oracle near the bottom of the technology sector on free cash flow. He also cited rising capital costs and scrutiny of circular financing. Banks are reportedly pulling back from AI lending, though the scale of that shift is unclear.
The sell-off has not settled the question of AI demand. Nvidia chief executive Jensen Huang expressed optimism about CoreWeave, in which Nvidia holds roughly a 10% stake. Comments from ASML and Taiwan Semiconductor Manufacturing Co. pointed to robust demand, while UBS strategists viewed the volatility as a reassessment of expectations rather than a fundamental break in AI investment.
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