CoreWeave Inc. (NASDAQ:CRWV) stock fell nearly 8% in Monday’s premarket trading as investors pulled back from high-growth technology and AI-linked stocks.
S&P 500 futures declined 0.6%, while Nasdaq futures fell 1.52%.
CoreWeave rivals Nebius Group N.V. (NASDAQ:NBIS) and IREN Limited (NASDAQ:IREN) dropped between 4% and 7%.
AI Spending Concerns Pressure CoreWeave
The weakness comes as investors reassess the outlook for AI infrastructure spending following renewed AI safety concerns.
The Financial Times reported that investors are concerned calls to slow AI development could eventually curb infrastructure and capital spending.
Those concerns gained attention after Amodei called for leading AI companies to work together on managing the technology’s development and safety. OpenAI CEO Sam Altman and SpaceX (NASDAQ:SPCX) CEO Elon Musk supported the effort, according to the report.
Barclays strategist Emmanuel Cau said a greater focus on AI safety could raise questions about the pace of capital spending. Investors are also considering what slower investment could mean for global growth and corporate earnings.
That debate has particular relevance for 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 weigh on expectations for future cloud-computing demand.
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Technical Analysis
CoreWeave traded at $82.24, below all its major moving averages.
The stock is about 8.8% below its 20-day simple moving average of $90.04. It is also 4% below its 50-day SMA of $85.53 and 10.7% below its 200-day SMA of $91.88. The 100-day SMA sits higher at $97.45.
That setup leaves several resistance levels above the current price.
Meanwhile, the relative strength index stands at 50.29. That is a neutral reading and suggests the stock is neither overbought nor oversold.
The longer-term technical picture also remains cautious. CoreWeave formed a death cross in July when its 50-day SMA fell below its 200-day SMA.
The stock has since attempted to recover. However, it has yet to establish a clear uptrend.
Key resistance sits near $94.50, while support is around $79.
Analyst Outlook
CoreWeave carries a Buy consensus rating, with an average price forecast of $145.44.
Truist Securities maintained a Buy rating and raised its price forecast to $165 on Aug. 24. Goldman Sachs maintained a Neutral rating and raised its forecast to $139 on Aug. 21. Citigroup maintained a Buy rating and raised its forecast to $159 on Aug. 14.
Benzinga Edge Rankings
CoreWeave has a weak Momentum score of 19.27 on the Benzinga Edge scorecard.
That reading matches the technical setup. CoreWeave remains below its major moving averages, which could limit rebounds until buyers reclaim the mid-$80s to low-$90s range.
Top ETF Exposure
CoreWeave is held by several AI-focused ETFs. The iShares Future AI & Tech ETF (NYSE:ARTY) has a 4.05% weighting, while the Roundhill Generative AI & Technology ETF (NYSE:CHAT) has a 3.49% weighting. The ARK Next Generation Internet ETF (NYSE:ARKW) has a 4.44% weighting.
As a result, flows into or out of these funds can contribute to trading activity in CoreWeave shares.
Price Action
CoreWeave shares fell 7.59% to $82.24 in Monday’s premarket trading, according to Benzinga Pro data.
Photo via Shutterstock
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