CoreWeave's worst week ever indicates that AI traders are becoming choosy

Wallstreetcn
2025.11.17 14:59

Traders are becoming more selective about artificial intelligence (AI) companies, favoring those with strong balance sheets over those with heavy debt. Due to the surge in demand for memory chips used in AI computing, companies like Micron Tech are seeing their stock prices rise, while others like CoreWeave Inc. (which fell 26% last week) are experiencing declines. The shift in AI trading is prompting investors to reassess their investments, with some companies like Oracle seeing their stock prices plummet due to concerns over debt and cash flow. "The market is reassessing everything, and those companies that once surged ahead but had little cash flow are now being hit hard," said Joe Tigay, portfolio manager of the Rational Equity Armor Fund, which holds shares in numerous AI stocks

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