Is It Time to Sell CoreWeave Stock? Nvidia CEO Jensen Huang Doesn’t Think So.
CoreWeave (NASDAQ: CRWV) stock has had some trouble lately. From Oct. 12 to Oct. 16, it lost about 25% of its value — not a pretty sell-off. CoreWeave’s sell-off is due to spiking debt yields, which indicates that the secondary bond market doesn’t think CoreWeave will be able to pay these obligations back. However, a major CoreWeave investor doesn’t think this is a problem.
The investor? None other than Nvidia CEO Jensen Huang. Nvidia has been a major CoreWeave investor, and as of the second quarter, it held about 47 million shares. That’s about 10% of CoreWeave’s total float, so it’s no small position. Huang isn’t as concerned as some may think, as he told investors at an unrelated event that he’s “optimistic, and their (CoreWeave’s) cost of capital is actually decreasing.”
So, the market thinks one thing, and the CEO of the largest company in the world, who is a CoreWeave investor and supplier, thinks another. Who is right?
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.