There are few AI bears who would bet on CoreWeave’s stock price rebounding by any meaningful amount.
But that’s exactly what happened Wednesday. The stock exploded almost 25% in a single trading session to inspire conversations as to whether peak bearishness may be behind us at this point.
CoreWeave had become the poster child for every worry about the AI boom, from debt-funded data centers to whether demand would hold up.
Shares dropped 40.6% in the month leading up to its earnings report as the cost of insuring its debt against default spiked.
Yet once the company posted third-quarter revenue of $3.66 billion, up 168% from a year earlier and ahead of estimates, jitters seemingly evaporated (notwithstanding the Nvidia drama).
CoreWeave also raised its 2026 revenue outlook to between $13 billion and $13.3 billion, and said it doesn’t plan to tap the unsecured debt market through 2027.
Wednesday’s rally marked the stock’s biggest one-day gain since June 2025.
CoreWeave closed at $60.77 Wednesday, 56.0% below its May 6 high of $137.98.
Even so, CoreWeave still sits 56.0% below its May high.
In any case, CoreWeave isn’t the only AI name recovering from last month’s weakness
Since last Thursday — when the S&P 500 suffered its worst day since April 2025 — AMD has rallied 36.7% and Nebius has jumped 28.5%.
Nvidia is the exception, for obvious reasons. Questions about Jensen Huang’s future have dragged the stock.
Each bar shows the move from the November 5 close through Wednesday’s close.
Notably, Wall Street’s fear gauge has cooled.
The VIX closed at 17.49 Wednesday, down from 28.18 last Thursday, which suggests that jitters are indeed slowly seeping out of markets.
None of this guarantees the AI selloff is over. But when the stock at the center of the AI debt scare jumps 24.7% on good news, it’s fair to wonder if peak bearishness is already behind us.
Elsewhere
🏦 Wall Street is bracing for more Fed rate hikes. Bank of America said the October hold “is looking like a policy mistake” and flagged a rising risk of another hike in January, while Goldman Sachs now expects a third hike in March. (Yahoo Finance)
🤖 Morgan Stanley dropped Nvidia from its top picks list. Shares still rose 2.9% Wednesday to $173.73 ahead of the chipmaker’s November 17 earnings report. (CNBC)
🚀 Anthropic’s IPO could draw record retail buying. Vanda Research expects about $250 million in net retail purchases on its debut, roughly twice the $118 million record SpaceX set, with shares slated to start trading on November 19. (Reuters)
Full Signal
Phil Neuhart is head of market and economic research at First Citizens Wealth. We sat down to discuss his team’s 8,300 target for the S&P 500, why he puts the AI trade in about the fifth inning, and the barbell of tech, utilities and staples he likes right now.
Tune in on Spotify, Apple Podcasts, or YouTube.
Rapid-fire
Meta’s longtime infrastructure chief will hand the reins to a former AWS executive (CNBC)
Michael Burry bought back into Lululemon after exiting the stock in October (Investing.com)
Bloom Energy jumped as CoreWeave’s results sparked a rally in AI power stocks (Yahoo Finance)
Microsoft generated $18.6 billion of free cash flow last quarter while its AI rivals burned cash (Opening Bell Daily)
Expedia and Booking rose after United Airlines blocked AI agents from booking flights (Investing.com)
Vinod Khosla says investors should judge AI by usage rather than stock prices (Yahoo Finance)
The VIX just logged its biggest one-day jump since December 2024 (Opening Bell Daily)
On this day
🗓 November 12, 1999: President Bill Clinton signed the Gramm-Leach-Bliley Act, repealing key parts of the Depression-era Glass-Steagall Act. The law let banks, securities firms and insurers combine under one roof.
Last thing
💡If you find this newsletter valuable, you can help shape its future by taking our 2-minute reader survey. Your feedback directly influences our content.
