
Nvidia's Huang defends CoreWeave after debt worries hit stock
The move
Speaking in Stockholm on Oct. 15, Nvidia CEO Jensen Huang said "CoreWeave's strength is improving every day" and that its cost of capital is falling, adding he sees no need for Nvidia to backstop the company. The comments came a day after CoreWeave shares fell 15% to $65.78, their biggest one-day drop since February, as investors grew worried about the AI cloud company's debt load. CoreWeave shares recovered after Huang's remarks, closing up 5.9% at $69.69.
Why it matters
Nvidia is both an investor in and major supplier to CoreWeave, so Huang's confidence carries weight for a company whose borrowing has drawn scrutiny.
The bear case
Huang's comments are a view, not a financing commitment, and CoreWeave's debt load and the cost of insuring it against default remain elevated.
What to watch
CoreWeave's next quarterly results and any update on its borrowing costs.
