CoreWeave sinks 5% premarket; week down 15% on debt worries

CoreWeave's slide this week followed a viral chart showing its spiking bond yields, which drew attention to its debt-heavy balance sheet and whether it can scale its business fast enough to cover rising interest expenses. The renewed fall Friday came even after Thursday's rebound, which followed comments from Nvidia CEO Jensen Huang at a Bloomberg event in Stockholm. Huang said CoreWeave's strength is improving every day, that he is optimistic, and that its cost of capital is actually decreasing. Nvidia's backing is significant, given that the AI chip giant holds roughly 47.2 million shares of CoreWeave, representing about a 10% stake in the company. CoreWeave is also a major customer of Nvidia's chips, underscoring the close ties between the two companies. The pressure was not limited to CoreWeave: peer Nebius fell 3% in premarket trading, putting it on course for weekly losses as well.