Episode summary
CoreWeave Shares Tumble After Loss Widens on AI Buildout Costs | Bloomberg Intelligence
Bloomberg Intelligence
· · 22 min · Hosts: Paul Sweeney, Norah Mulinda · Guests: Anurag Rana, Abigail Gilmartin, Sagit Manor, Brian Hefty
Summary
CoreWeave’s post-IPO rally came under pressure as the analyst said investors are again focusing on the costs of building out AI infrastructure rather than just bookings growth. He described CoreWeave as a simple GPU-rental business tied to Nvidia, but argued that its public-market challenge is the need to fund heavy capex, debt and interest expense while expanding data centers for AI workloads. The analyst said the fundamentals remain strong, but margins are being squeezed by the scale of the buildout.
The conversation also covered the DOJ’s Google case and speculation around Chrome, which the analyst said is likely just one of many hypothetical remedies rather than a clear path to a sale. Separately, an analyst said Gildan’s $2.2 billion cash-and-stock deal for Hanesbrands makes strategic sense because the two businesses are highly complementary and should help Gildan benefit from lower tariff exposure and scale advantages.
Later, the NYAX CFO framed the company as a global payments leader for unattended retail and said EV charging is a key growth driver, including a recent agreement with a hotel chain for up to 100,000 charging stations. The episode closed with a farm operator saying U.S. farmers are producing well but are under financial strain from weak commodity prices, high fertilizer costs and elevated interest rates.
Key takeaways
- The analyst said CoreWeave’s revenue story is still strong, but investors are now worried about capex, debt and interest expense.
- The analyst said CoreWeave is essentially renting GPUs for AI workloads, with Nvidia as a key partner and investor.
- The analyst said Chrome is not actually up for sale, and a forced divestiture would be only one hypothetical DOJ remedy.
- Abigail Gilmartin said Gildan’s $2.2 billion Hanesbrands deal fits because the companies are operationally complementary and tariff exposure should be manageable.
- Sagit Manor said NYAX sees EV charging as one of its main growth drivers, including a hotel agreement that could reach 100,000 stations.
- The farm operator said the U.S. farm economy is weak because commodity prices are low, fertilizer is expensive and interest costs matter more than tariffs right now.
Notable quotes
“they are renting out GPUs for people who are you know looking for any anywhere to run their AI workloads”
“fundamentals are strong. They're still getting a lot of bookings, people, you know, using their cloud”
“that product is probably worth north of $50 billion”
“I think it makes a lot of sense just in terms of, you know, Gilden's building out their whole manufacturing footprint”
“EV is definitely one of the three main growth drivers as we look into 2025 and even beyond”
How the episode opens
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Honor Rana joins us here. He's a tech analyst for Bloomberg Intelligence. Um, coreweave honor, can you we've been talking about corewave today. I need a better understanding. Just give me the the dees function kind of definition basic definition what coreweave does and what's going on with the news.
So in the most simplistic way they are renting out GPUs for people who are you know looking for any anywhere to run their AI workloads. That could be training of the models or that could be you know the inference workloads from the applications that you're running. So very simple business model.
Um they buy they are a partner with Nvidia. Nvidia is also an investor there. They buy their chips, they put it in a data center and people you know rent it out from them.
So when I look at the stock performance for Core Wee, of course we know it IPOed back in late March. We're seeing shares that are up about 200%. But I want to know why is there this conversation about the rally sputtering out?
What's really weighing on the sock here? So when you look at it and you go back to March when the IPO was coming out, it was actually very poorly received. It you know one could argue it was underpriced because um not looking at the growth prospects of the company but focused more on the capital expenditure and the expense and the loss and they have to go out to debt markets to issue.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai data center costs
- coreweave earnings outlook
- gildan hanesbrands acquisition
- nayfax earnings
- macro ag trends
Companies and tickers mentioned
- CoreWeave
- Gildan Activewear
- Hanesbrands Inc.
- Nayfax
- Hefty Seed Company
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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