AI stocks bounce back after bruising selloff, CoreWeave gets Goldman upgrade
AI-linked stocks bounced back on Monday from a bruising selloff last week as yields on government bonds dropped and crude oil prices eased, while CoreWeave gained following a rating upgrade. Its shares were up 2.4 percent in choppy trading after losing a quarter of their value last week as the neocloud company's $50 billion debt triggered a crisis of confidence, sparking a global selloff across…
On Monday, AI-linked stocks rebounded after a sharp sell-off the previous week, as government bond yields declined and crude oil prices softened. CoreWeave experienced a positive shift following an upgrade from Goldman Sachs. Its shares rose by 2.4 percent in a volatile session, after experiencing a 25% drop last week due to concerns over its $50 billion debt, which ignited uncertainty and led to a global sell-off in AI and tech stocks.
Thomas Hayes, chairman at Great Hill Capital, noted that the situation will persist, presenting an ongoing tug-of-war between optimism and skepticism. Goldman Sachs raised CoreWeave's rating to 'buy' from 'neutral', citing the company's limited computing capacity and competitive advantage over other neocloud firms, which could boost its annual recurring revenue per megawatt over the next two years.
The brokerage believed the recent decline presents an attractive investment opportunity. Meanwhile, CoreWeave's bond maturing in 2031 witnessed a 19.5 basis points decrease in yield, settling at 15.13 percent, down from over 16 percent the previous week, according to Tradeweb data. Nebius Group, a rival neocloud firm, climbed 3.4 percent following a drop of more than 31 percent over the past week.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
