CoreWeave gains after Goldman upgrade as AI stocks rebound from selloff
AI-linked shares rose on 19 October after a steep decline the previous week, but elevated borrowing costs remained a concern for investors.
CoreWeave shares rose in choppy trading on Monday, 19 October, after Goldman Sachs upgraded the AI cloud company, as AI-linked stocks rebounded from a sharp selloff the previous week, Reuters reported. The move offered investors some relief after concerns about debt and borrowing costs had weighed on the sector.
CoreWeave was up 2.4% when Reuters reported the move, after losing roughly a quarter of its value the previous week. Goldman Sachs raised its rating to buy from neutral, describing the pullback as a buying opportunity. The figures were intraday observations, rather than closing prices.
Why Goldman Sachs upgraded CoreWeave
Goldman cited tight computing capacity and what it sees as CoreWeave’s performance advantage over rival neocloud companies. The bank said those factors could lift annual recurring revenue per megawatt over the next two years. CoreWeave describes itself as an AI cloud infrastructure provider; its investor overview says the company was established in 2017 and listed on Nasdaq in March 2025.
Bond trading showed why financing remained central to the market’s assessment. Reuters, citing Tradeweb data, said the yield on CoreWeave’s bond due in 2031 fell 19.5 basis points to 15.13%, after exceeding 16% the previous week. Bond yields move inversely to prices, so the lower yield indicated some easing in the cost investors demanded to hold that debt.
Thomas Hayes, chairman of Great Hill Capital, told Reuters that the bond market remained skeptical about financing AI expansion without demanding higher yields. He said the share-price recovery could be a temporary bounce. Reuters linked the prior week’s selloff to a hot inflation reading that increased expectations of interest-rate hikes and raised concern about borrowing costs for heavily indebted AI companies.
How widely AI shares recovered
The rebound extended beyond CoreWeave. Reuters reported that rival Nebius Group rose 3.4% after falling more than 31% over the preceding two weeks. Data-center operators Applied Digital and IREN gained 8.5% and 5%, respectively.
The Philadelphia Semiconductor Index was up 2.4% when Reuters reported, following a decline of more than 11% the previous week. Reuters said the index had lost around $2 trillion in market value during an eight-session losing streak through Friday. Intel also gained after J.P. Morgan upgraded it to neutral from underweight; Nvidia, AMD, Broadcom and Micron rose after their earlier declines.
Earnings reports from large technology companies and chipmakers later this week will give investors another measure of whether growth can support valuations amid debt and interest-rate concerns. Jay Woods, chief market strategist at Freedom Capital Markets, told Reuters that the question is whether investors remain willing to pay a premium for AI growth.
Read in depth: Business
France summons Vinted and other marketplaces over suspected looted goods listings
French ministers called online marketplaces to a meeting after suspected listings appeared following weekend looting. Vinted says it has removed potentially linked items and...
Prosecutors allege Saudi support for former OpenAI employee accused of planting recorder
A new detention filing cites Abdulrahman Alfozan’s contacts with a Saudi royal family member and travel arrangements for his family. His lawyer disputes that he is a flight risk.
Sources and context
- AI stocks bounce back after bruising selloff, CoreWeave gets Goldman upgradeCNA (Reuters report)
- CoreWeave – Investor Relations: Corporate OverviewCoreWeave Investor Relations
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.