Why CoreWeave’s Struggles Could Weigh Down Nvidia’s Stock
CoreWeave (NASDAQ:CRWV)’s stock crashed last week amid concerns of rising interest rates and its high debt load. CoreWeave has a close relationship with tech giant Nvidia (NASDAQ:NVDA) and is a big customer of theirs. Not only that, but Nvidia has also invested billions into CoreWeave, and thus, it has a lot at stake in how the neocloud company does.
Both stocks have been struggling of late, although Nvidia’s decline has been much more modest in comparison; it has declined by around 2% over the past month, while CoreWeave’s stock is down well over 20%.
However, things could get worse for Nvidia as concerns related to CoreWeave may cause investors to question how sustainable Nvidia’s long-term growth really is, particularly if companies have to scale back investments in artificial intelligence (AI) due to rising interest rates.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.