Catenaa, Monday, October 19, 2026- CoreWeave stock rebounded more than 3% on Monday after Goldman Sachs upgraded the AI cloud provider, despite last week’s stock and bond-market selloff.
Goldman Sachs raised its recommendation on CoreWeave to Buy from Neutral, citing the company’s competitive position among cloud infrastructure providers for artificial intelligence.
Goldman Analysts led by Gabriela Borges expect CoreWeave to finance its future expansion at borrowing costs only modestly above existing levels.
Benzinga reported that Billionaire investor Chamath Palihapitiya estimated on Friday’s All-In podcast that CoreWeave needs another $35 billion in borrowing to finance its existing customer commitments.
Since CoreWeave raises funds only after signing long-term deals to fulfill those commitments, investors are concerned that rising interest rates would eat into the returns of deals that are already signed.
Citing SemiAnalysis, Benzinga reported a 5.9% rate on a tranche of CoreWeave’s Meta-backed financing in July, compared with roughly 10% on its unsecured bonds at the time.
The gap shows why loans backed by major technology customers can be considerably cheaper.
That confidence contrasts with the bond market, where debt issued in June at a yield of 9.675% was trading near 15% last week, Reuters reported.
Yahoo Finance said that the analyst also raised the stock’s price target from $106 to $139 per share following a sell-off of more than 25% last week.
According to Yahoo Finance, a chart showing CoreWeave’s spiking bond yields that went viral last week raised investors’ concerns about the company’s heavy debt and subsequent rising interest payments, which triggered an AI stock sell-off.
Nvidia CEO Jensen Huang tried to ease concerns about the company’s debt-heavy balance sheet on Thursday, saying he was “optimistic” and that its “cost of capital is actually decreasing.”
Meanwhile, retail investors increased their CoreWeave holdings last week, according to Robinhood Markets as reported by Yahoo Finance, and data shows a record five-day net purchase volume for the stock on the trading platform.
Wall Street has defended CoreWeave over the past several days as the stock’s weakness weighed on the rest of the tech sector.
“CoreWeave exited the second quarter with a revenue backlog of ~$104 billion,” Yorkville Ives Partner and Senior Managing Director Dan Ives wrote, Yahoo Finance reported.
“Those are commitments customers have already made, not data centers built on spec in the hope of finding tenants,” he said.
Ives added, “We view this white-knuckle drawdown as a golden buying opportunity.”
