CoreWeave Stock Jumps After CEO Rebuttal

CoreWeave (CRWV) stock rose about 12% on Jan. 12, 2026, after CEO Michael Intrator rebutted concerns about GPU useful life and Nvidia financing on a podcast. The comments boosted investor confidence amid rapid revenue growth and a large backlog, even as execution and debt remain significant risks.

CEO Rebuttal and Stock Reaction

In a podcast appearance, Intrator dismissed claims that Nvidia-related financing involved circular obligations, calling the Nvidia investment "de minimis" at about $300 million compared with the roughly $25 billion the company has raised and its $42 billion valuation. He described CoreWeave’s financing structure as relying on special-purpose vehicles that prioritize revenue from investment-grade customers like Microsoft and Meta to service lenders. These remarks helped the stock recover some value lost since its mid-2025 peak.

Backlog and Revenue Growth

CoreWeave, which operates an AI-focused cloud optimized for large GPU workloads, reported revenue of $3.6 billion for the first nine months of 2025, a 204% year-over-year increase. The most recent quarter grew roughly 134% from a year earlier. Its backlog stands at $55.6 billion, about double the prior quarter, anchored by long-term contracts with OpenAI, Meta, and Microsoft. The company operates 41 global sites through leases and builds. Analysts cite this backlog as the basis for a 2026 revenue forecast exceeding $12.1 billion. Wall Street coverage ranges from Hold to Moderate Buy, with average 12-month price targets between $124 and $131. One firm upgraded to Overweight with a $125 target on Jan. 8, 2026, while others have adjusted ratings recently.

Debt and Execution Risks

CoreWeave had about 590 megawatts of active power online late in 2025, below management’s 850-megawatt year-end target, despite securing roughly 2.9 gigawatts under contract. The company plans $12–14 billion in capital spending across 2025 and 2026, with quarterly interest expenses near $310.6 million. Its total debt is about $18.5 billion, including roughly $14 billion of higher-cost borrowings.

Management assumes a six-year useful life for GPUs, consistent with peers like Google and Microsoft. It recently renewed an older Nvidia A100 contract at 95% of its original value, which executives cite as support for this depreciation assumption. The company also abandoned a planned $9 billion acquisition late in 2025, highlighting the strain of rapid expansion under heavy financing.

The company’s ability to convert its backlog into operational capacity on schedule, complete power builds, and sustain GPU economics will determine whether it can maintain growth and service its large, high-cost debt load.