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Published: Oct 15, 2026, 3:10 PM
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Nvidia (NVDA) CEO Jensen Huang is unlikely to ignore the building pressure on CoreWeave's (CRWV) stock price and bond values.
The simple reason why is that he can't look the other way given how intertwined Nvidia is with the most well-known — and debated — neocloud.
For one, in January of this year Nvidia announced an expansion of its relationship with CoreWeave. The deal included Nvidia investing $2 billion in CoreWeave stock. CoreWeave committed to using Nvidia's technology to build more than 5 gigawatts of AI factories by 2030.
Nvidia now holds 47.2 million shares of CoreWeave stock, or around 10% of the company.
And two, CoreWeave is a huge customer of Nvidia, as seen below in the chart from the team at Boring Business.
CoreWeave buys GPUs from Nvidia and then rents that compute back to other companies, including the hyperscalers like Meta (META).
"0% chance $NVDA lets $CRWV falter," said tech analyst Daniel Newman on X.
The CRWV/NVDA connection.
Yet, failure of CoreWeave is what the market is chatting about.
Shares of CoreWeave plunged 6% in pre-market trading on Thursday following a 15% rout on Wednesday.
"In our view, the company's long-term business model remains economically challenged; we maintain our Underperform," Bernstein analyst Madison Rezaei said in a note Thursday.
Two factors collided to spark Wednesday's sell-off.
One, CoreWeave's corporate bonds across maturities continued to be dumped on fears of an AI slowdown and what that would mean for the company's precarious balance sheet.
The rise in yields on CoreWeave's bonds even spurred Elon Musk to post "Yikes" on X in response to a post by venture capitalist Chamath Palihapitiya.
Two, Gartner, in a new report, forecast that by 2030 "cost pressure and a lack of a differentiating business model will force over 80% of neocloud providers to cease independent operations."
CoreWeave is a neocloud. The report essentially was akin to yelling fire in a crowded theater.
At some point soon, Huang may have to step in and comment on Nvidia's confidence in CoreWeave. He has a financial interest in doing so not only from an Nvidia standpoint, but also from the viewpoint of the wider AIm boom his chips are fueling.
Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show, the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com.
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