CoreWeave stock plunged 46% in weeks

CoreWeave, one of the biggest companies riding the artificial-intelligence boom, has lost about $33 billion in market value in just six weeks as its share price slid 46%. 

Investors have grown uneasy about a potential AI bubble, the collapse of a $9 billion takeover attempt, and sharp criticism from well-known short seller Jim Chanos, who predicted the Enron collapse.

The sell-off accelerated after construction delays hit a key AI data-center project in Denton, Texas, where heavy rain and strong winds stalled work for nearly 60 days. The setback pushed back delivery of a 260-megawatt computing cluster that CoreWeave plans to lease to OpenAI.

Concerns deepened after mixed messaging from management during earnings calls further added to confusion about how widespread the delays were.

CoreWeave’s debt-heavy model of buying Nvidia chips with high-interest borrowing and renting them to a small group of major clients has also drawn scrutiny.

Despite revenue more than doubling to $1.4 billion, the company lost $110 million last quarter, raising doubts about long-term profitability.