CoreWeave data center delivery delays, suspected issues with Core Scientific, both plummeted over 10%
CoreWeave's stock price plummeted 16% due to disappointing earnings guidance, which is also related to delays with its partner Core Scientific. The market speculates that Core Scientific is the root cause of CoreWeave's issues, and the latter's stock also fell sharply by 10%. This incident reflects that delivery delays in the AI infrastructure competition may trigger panic selling among investors
AI infrastructure provider CoreWeave's stock price plummeted due to disappointing key performance guidance, with the market widely speculating about the root of the issues related to its partner Core Scientific.
On Tuesday, CoreWeave's stock closed down 16%, after the company acknowledged that delays from a data center partner affected operations. The company's CEO Mike Intrator stated in a media interview:
Aside from a single delay at one data center, everything else this quarter has gone completely according to our plan.
Reports indicate that Jim Cramer believes the delayed sites in Texas, Oklahoma, and North Carolina are related to Core Scientific. Notably, CoreWeave attempted to acquire Core Scientific for $9 billion earlier this year, but was rejected by the latter's shareholders.
The market reacted strongly to this news. While CoreWeave's stock plummeted, the accused party Core Scientific also saw its stock drop by 10%.
This chain reaction indicates that, in the context of tech giants and startups competing for AI computing power, any bottleneck in infrastructure delivery could trigger panic selling among investors.
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