CoreWeave Stock Tumbles as Jensen Huang Exit Rattles Nvidia-Backed Neoclouds a Day After Big Earnings Rally

CoreWeave Inc. shares fell sharply on Thursday, giving back part of the previous day's earnings-fueled rally after Jensen Huang's resignation as Nvidia's chief executive rattled AI infrastructure stocks.

CoreWeave stock traded at $56.87 in morning trading, down $3.90, or 6.42%. The stock had fallen as much as 14% before the opening bell. About 37 million shares changed hands early in the session, close to the stock's three-month average daily volume.

CoreWeave's market value stood at about $31.4 billion.

Rally reversed

The decline erased part of a nearly 25% jump on Wednesday, after CoreWeave reported third-quarter results that beat Wall Street forecasts.

The AI cloud provider reported revenue of $3.66 billion and raised its full-year 2026 revenue forecast to between $13.0 billion and $13.3 billion, according to The Motley Fool. It also projected capital spending of $37 billion to $39 billion.

Nvidia ties

CoreWeave is among the companies most closely tied to Nvidia. Nvidia is CoreWeave's critical supplier of graphics processing units and holds a stake of about 12% in the company, according to Investing.com. Nvidia invested $2 billion in CoreWeave in January, TechCrunch reported.

Huang resigned Thursday as Nvidia's president, CEO and director following reports of two extramarital relationships, including one with a woman U.S. officials suspect of being a Chinese spy. Nvidia named CFO Colette Kress interim CEO.

Analysts have described Nvidia as a kind of "central bank" for the AI ecosystem because of its investments in customers and suppliers. Huang's departure has raised questions about whether that financial support will continue at the same pace.

Sector-wide selloff

The selloff spread across so-called neoclouds, which rent AI computing power built on Nvidia chips. IREN shares fell about 8%, and Nebius tumbled after its own disappointing outlook. The Roundhill Neocloud ETF fell more than 12% before the open.

"Shares of neoclouds, which heavily rely on Nvidia's GPUs, tumbled following Huang's resignation on Thursday," CNBC reported.

Debt concerns

CoreWeave also faced pressure from reports that it plans to raise at least $4 billion through new investment-grade loans to fund more Nvidia chip purchases, Investing.com reported.

Investors have grown uneasy about the large amounts of debt neocloud companies are taking on to build AI data centers. Huang's exit adds another layer of uncertainty.

Volatile stock

CoreWeave shares have swung sharply this year. The stock is down about 22% over the past 52 weeks, and its 52-week low is $40.58.

Investors will watch Nvidia's earnings report on Nov. 17 for signs of how the leadership change might affect chip supply and investment plans across the AI industry.

This article is for informational purposes only and does not constitute investment advice.