Why Is CoreWeave Stock Falling on Monday?

CoreWeave Inc. shares fell nearly 8% in Monday's premarket trading as investors pulled back from high-growth tech and AI-related stocks.

S&P 500 futures were down 0.6%, while Nasdaq futures fell 1.52%.

CoreWeave competitors Nebius Group N.V. and IREN Limited declined between 4% and 7%.

AI Spending Concerns Weigh on CoreWeave

The weakness comes as investors reassess the outlook for AI infrastructure spending amid renewed concerns over AI safety.

According to the Financial Times, investors worry that calls to slow AI development could ultimately curb infrastructure and capital expenditures.

These concerns gained attention after Amodei urged leading AI companies to jointly manage the technology's development and safety. OpenAI CEO Sam Altman and SpaceX CEO Elon Musk reportedly expressed support.

Barclays strategist Emmanuel Cau said greater focus on AI safety could raise questions about the pace of capital spending. Investors are also considering what an investment slowdown could mean for global growth and corporate earnings.

The debate is particularly relevant to CoreWeave. The company's business is closely tied to demand for GPU computing and AI infrastructure. Any slowdown in AI development or capital spending could pressure expectations for future cloud computing demand.

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Technical Analysis

CoreWeave was trading at $82.24, below all of its major moving averages.

The stock is roughly 8.8% below its 20-day simple moving average of $90.04. It is also 4% below its 50-day simple moving average of $85.53 and 10.7% below its 200-day simple moving average of $91.88. The 100-day simple moving average is higher, at $97.45.

This pattern implies multiple resistance levels above the current price.

Meanwhile, the relative strength index stands at 50.29. This is a neutral reading, indicating the stock is neither overbought nor oversold.

Long-term technicals also remain cautious. CoreWeave formed a death cross in July, when its 50-day simple moving average crossed below its 200-day simple moving average.

The stock has attempted to rebound since then. However, a clear uptrend has not yet been established.

Key resistance is near $94.50, with support around $79.

Analyst Outlook

CoreWeave has a consensus Buy rating with an average price target of $145.44.

Truist Securities maintained a Buy rating on August 24 and raised its price target to $165. Goldman Sachs maintained a Neutral rating on August 21 and raised its price target to $139. Citi maintained a Buy rating on August 14 and raised its price target to $159.

Edge Score

CoreWeave has a weak momentum score of 19.27 on the Edge Scorecard.

This reading aligns with the technical picture. CoreWeave remains below its key moving averages, which could limit rebounds until buyers reclaim the mid-$80s to low-$90s range.

Major ETF Holdings

CoreWeave is held by several AI-focused ETFs. The iShares Future AI & Tech ETF has a weight of 4.05%, and the Roundhill Generative AI & Technology ETF has a weight of 3.49%. The ARK Next Generation Internet ETF has a weight of 4.44%.

Therefore, inflows or outflows from these funds could impact trading activity in CoreWeave stock.

Price Action

CoreWeave shares were down 7.59% in Monday's premarket trading data, at $82.24.