coreweave shares fell more than 10% after the company reported a larger-than-expected quarterly loss. The Nvidia-backed AI computing provider posted a loss of $0.60 per share, compared to analyst expectations of $0.45. However, the revenue surged 207 % year-over-year to $1.21 billion, beating forecasts. This rapid growth came with sharply higher operating expenses, which jumped 276% to $1.19 billion.
The company is expanding quickly to meet what it calls unprecedented demand for its AI products and services. Executives said they are still operating in a supply-constrained market, where demand far outpaces what they can currently deliver. This situation is pushing the company to spend heavily on infrastructure, equipment, and resources, even if it means pressure on margins in the short term.
While these costs are weighing on profitability now, management believes they are necessary to capture long-term opportunities in the AI market. The company also raised its full-year revenue guidance to between $5.15 and $5.35 billion, up from its previous forecast of $4.9 to $5.1 billion. This shows confidence that demand will remain strong and that investments being made today will translate into higher future sales.
The market reaction reflects investor concerns about how long CoreWeave can sustain such heavy spending before it sees the payoff. Still, the stock has more than tripled since its market debut in March, showing that investors remain optimistic about its role in the growing AI infrastructure space. The future will depend on how quickly the company can scale supply to meet demand while controlling costs. If it can strike that balance, the current share drop may be a short-term reaction in what could remain a high-growth story.
