Milk Road AI(@MilkRoadAI):CoreWeave's CEO just told his own employees the market is acting IRRATIONALLY. In an email seen by Bloomberg, Michael Intrator wrote that "when you are building a new type of technology company, there will be periods of time when the market misunderstands and acts irrationally." He said CoreWeave's contracted backlog "more than supports" its debt obligations, and that he's confident in its business model, customers and execution. He also pointed at rivals. He said the weakness and delays around several competitors' attempted IPOs and debt deals are "bleeding into the narrative around CoreWeave." The bond market isn't convinced yet. CoreWeave's unsecured bonds due 2032 traded below 80 cents on the dollar today, according to Bloomberg Law. That's a yield above 15%, and those are levels usually linked to DISTRESS. But you have to understand the DEMAND. CoreWeave ended June with about $104 billion in backlog, and that doesn't count more than $25 billion in new customer commitments signed early in the third quarter. Q2 revenue more than doubled from a year earlier to $2.58 billion. Intrator says the company is still largely sold out for years. The bear case is the cost of building it. Interest expense hit $640 million last quarter, up from $267 million a year earlier, and CoreWeave lost $626 million in the quarter. It spent $14.1 billion on property and equipment in the first half of 2026, compared with $3.9 billion in the same period last year. That's the whole debate in two numbers. More than $100 billion of contracted demand on one side, and a 15% cost of money on the other. I am still bullish on $CRWV here.

2026.10.14 19:23

CoreWeave's CEO just told his own employees the market is acting IRRATIONALLY. In an email seen by Bloomberg, Michael Intrator wrote that "when you are building a new type of technology company, there will be periods of time when the market misunderstands and acts irrationally." He said CoreWeave's contracted backlog "more than supports" its debt obligations, and that he's confident in its business model, customers and execution. He also pointed at rivals. He said the weakness and delays around several competitors' attempted IPOs and debt deals are "bleeding into the narrative around CoreWeave." The bond market isn't convinced yet. CoreWeave's unsecured bonds due 2032 traded below 80 cents on the dollar today, according to Bloomberg Law. That's a yield above 15%, and those are levels usually linked to DISTRESS. But you have to understand the DEMAND. CoreWeave ended June with about $104 billion in backlog, and that doesn't count more than $25 billion in new customer commitments signed early in the third quarter. Q2 revenue more than doubled from a year earlier to $2.58 billion. Intrator says the company is still largely sold out for years. The bear case is the cost of building it. Interest expense hit $640 million last quarter, up from $267 million a year earlier, and CoreWeave lost $626 million in the quarter. It spent $14.1 billion on property and equipment in the first half of 2026, compared with $3.9 billion in the same period last year. That's the whole debate in two numbers. More than $100 billion of contracted demand on one side, and a 15% cost of money on the other. I am still bullish on $CRWV here.

Melvin@MelvinInvests

2026.10.14 14:47

Everyone needs to STOP worrying so much about this neocloud selloff. I think people are forgetting just how important companies like $CRWV and $NBIS are to the entire AI ecosystem, especially $NVDA. And remember what Jensen Huang announced just TWO months ago? Nvidia partnered with BlackRock, Blackstone, Goldman Sachs, Apollo, Brookfield, and KKR to help mobilize over $500 BILLION in financing for AI infrastructure. Think about what that actually means. Jensen understands that the biggest bottleneck in AI isn't necessarily demand anymore, it's getting enough capital, power, and infrastructure to actually meet that demand. Also, Jensen NEEDS these neoclouds to succeed because they give Nvidia leverage against the hyperscalers. Companies like $MSFT, $AMZN, and $GOOGL are developing their own custom AI chips to reduce their dependence on Nvidia over time. And that's exactly why neoclouds are so important. Companies like CoreWeave and Nebius are building enormous amounts of GPU infrastructure centered around Nvidia's technology. They give AI companies another place to access compute without having to rely entirely on the traditional hyperscalers. The stronger these neoclouds become, the more alternatives customers have and the less dependent Nvidia becomes on a handful of hyperscalers controlling AI infrastructure spending. Now imagine what happens if these neoclouds suddenly struggle to finance their expansion, which is exactly what we're starting to see with $CRWV. CoreWeave's bond yields just surged to over 15%, which is a warning sign. For context, these bonds were issued at a 9.625% yield just four months ago and now investors are demanding significantly higher returns to hold that debt. Essentially, the bond market is telling us that investors are becoming increasingly concerned about CoreWeave's financial risks, which could make future borrowing a lot more expensive. And that's a massive problem for $NVDA because these companies are buying billions of dollars worth of GPUs and helping expand the market for Nvidia's technology. This is why I believe Jensen will step in to support strategically important partners like CoreWeave if financing conditions become difficult. Nvidia has already demonstrated that it's willing to put capital behind this ecosystem. I'm not saying Jensen will bail out every neocloud, but I find it very hard to believe he'll just sit back and watch one of his most important customers struggle to finance its expansion, especially when Nvidia needs these companies to compete against the hyperscalers.