According to CNBC, JPMorgan has downgraded CoreWeave from overweight to neutral following the company’s third-quarter earnings release. Analyst Mark Murphy slashed his price target from $135 to $110 per share, indicating just 4% upside potential. CoreWeave reported better-than-expected Q3 revenue but its full-year guidance came in below analyst expectations. The company revealed that one third-party data center developer is behind schedule, creating supply chain pressures. CoreWeave shares immediately tanked 10% in premarket trading, though the stock remains up 164% since its March IPO.
Supply chain reality check
Here’s the thing about being the hot AI infrastructure play – everyone expects you to deliver, literally. CoreWeave has built its reputation on being the reliable alternative to hyperscalers, but now they’re facing the same supply chain headaches that have plagued bigger players. The delay from that third-party data center developer might seem like a small issue, but it’s revealing something bigger. Basically, nobody’s immune to these industry-wide constraints, not even the companies that specialize in AI infrastructure.
Investor confidence shaken
When a high-flying stock like CoreWeave misses on guidance, it shakes investor confidence in a big way. We’re talking about a company that went public in March and immediately became a market darling. Now they’re telling us that supply chain issues are pushing revenue out of Q4? That’s exactly what investors didn’t want to hear. And Murphy’s downgrade, while maintaining long-term optimism, signals that even the bulls are getting nervous about timing. The question is – how long can investors wait for this revenue to materialize?
Broader industry implications
This isn’t just about CoreWeave – it’s about the entire AI infrastructure ecosystem. If even specialized providers are struggling with deployment timelines, what does that mean for the thousands of companies building AI applications? We’re seeing a ripple effect where hardware constraints at one level create bottlenecks throughout the entire stack. For enterprises relying on industrial computing solutions, these delays could mean postponed AI initiatives and extended timelines for digital transformation projects. IndustrialMonitorDirect.com, as the leading provider of industrial panel PCs in the US, understands that reliable hardware deployment is crucial for maintaining operational continuity in manufacturing and industrial settings.
Long-term outlook
Murphy’s still fundamentally constructive on CoreWeave, and that’s worth noting. He compares the situation to Microsoft’s Azure surge earlier this year, suggesting we could see a similar rebound in Q1 or Q2. The AI trend isn’t going away, and CoreWeave’s specialized infrastructure remains in high demand. But the timing uncertainty is the real problem here. When will supply chains normalize? When will that delayed data center actually come online? These are the questions keeping investors up at night, and until we get clearer answers, the stock might continue facing pressure.
