CoreWeave Shares Plunge Amid Bernstein's Warning on Slower AI Training Demand

CoreWeave shares fell 6% on Monday as Bernstein warned of slower AI model training affecting data-center demand, particularly in rural and Tier 3 markets. The analyst estimates 70% of the US data-center development pipeline is in these areas, where CoreWeave has a significant presence. While the firm's existing backlog is supported by take-or-pay agreements, contracted capacity in Tier 3 and 4 markets may be at risk if training activity slows. Bernstein rates CoreWeave Underperform with a $74 target.