CoreWeave Inc. shares tumbled approximately 7% in pre-market trading on Friday, May 8, 2026, after the AI cloud infrastructure company issued second-quarter revenue guidance that fell short of Wall Street expectations and raised the lower end of its 2026 capital expenditure forecast. The disappointing outlook underscores the tension between surging demand for AI computing power and the heavy costs of building out data centers and chip capacity.
For the first quarter, CoreWeave reported revenue of $2.078 billion, more than double the $982 million recorded a year earlier. However, operating expenses surged to $2.222 billion, leading to a net loss of $740 million compared to a $315 million loss in the prior-year period. The company's revenue backlog—a measure of signed future contracts—stood at $99.4 billion as of March 31, signaling strong demand but also highlighting the long lag between contract signing and revenue recognition.
The company's second-quarter outlook disappointed investors. CoreWeave projects revenue between $2.45 billion and $2.60 billion, below the consensus estimate of $2.7 billion. Adjusted operating income is expected in the range of $30 million to $90 million, while interest expense is forecast between $650 million and $730 million. Capital expenditures for the quarter are seen jumping to $7 billion to $9 billion. For full-year 2026, the company expects revenue of $12 billion to $13 billion and capital spending between $31 billion and $35 billion.
Chief Financial Officer Nitin Agrawal attributed the increased capital expenditure guidance to rising component prices. He characterized the margin pressure as "timing-based, not economic," explaining that costs are being incurred before revenue from new capacity begins to flow. The company is grappling with pricier components, supply shortages, and a growing interest burden that could force it to raise additional capital before its contracts generate cash.
Despite the market's negative reaction, CEO Michael Intrator dismissed the selloff as "market noise" and described the company's trajectory as a "fantastic ramp." Andrew Rocco, a stock strategist at Zacks Investment Research, drew parallels to Amazon's early days and suggested CoreWeave could become a "dominant player in the AI infrastructure industry" if investors remain patient.
CoreWeave's customer roster remains a key bullish argument. The company recently announced a $21 billion cloud-capacity deal with Meta Platforms, a $6 billion agreement with Jane Street, and a partnership with Anthropic. It also added over 400 megawatts of new contracted power during the quarter, bringing its total contracted load to more than 3.5 gigawatts.
Not all analysts were bearish. Wells Fargo maintained its Overweight rating and raised its price target to $155, according to Seeking Alpha. The bank's optimism reflects confidence in CoreWeave's long-term position in the AI infrastructure market, even as near-term costs weigh on profitability.
The pre-market decline highlights a broader challenge for AI infrastructure companies: converting massive backlogs into actual cash flow fast enough to cover escalating costs. CoreWeave's $99.4 billion backlog is a testament to demand, but as Friday's move made clear, a large backlog does not guarantee near-term profit. Wall Street is watching closely to see if the company can navigate its spending curve and deliver on its promises.
