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…
AI-related stocks saw a recovery on Monday following a sharp sell-off the previous week, as government bond yields declined and crude oil prices softened. CoreWeave experienced a boost in its stock price following an upgrade from Goldman Sachs. The company's shares increased by 2.4 percent in a volatile session, after previously losing a quarter of their value amid investor concerns over the $50 billion debt it had incurred.
This volatility is expected to continue, with fluctuations in confidence affecting AI and tech stocks, according to Thomas Hayes, chairman at Great Hill Capital. Despite the recent slump, CoreWeave's performance advantage over rival neocloud firms is anticipated to drive an increase in annual recurring revenue per megawatt over the next two years, according to Goldman Sachs.
The firm upgraded CoreWeave's rating to "buy" from "neutral," viewing the recent decline as a potential buying opportunity. The yield on CoreWeave's bond maturing in 2031 dropped by 19.5 basis points to 15.13 percent, down from over 16 percent the previous week, based on Tradeweb data. Neocloud competitor Nebius Group gained 3.4 percent, recovering from a more than 31 percent plunge over the past few sessions.
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.
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