This Nvidia stock just crashed 10%

Core Viewpoint - CoreWeave's stock experienced a nearly 10% decline in pre-market trading despite better-than-expected quarterly results, indicating a negative investor sentiment influenced by operational challenges [1][4]. Financial Performance - CoreWeave reported third-quarter revenue of $1.36 billion, exceeding Wall Street's forecast of $1.29 billion [3]. - Adjusted operating income reached $217.15 million, surpassing expectations of $177.2 million [3]. - The adjusted EPS loss was narrowed to $0.22 per share, better than the anticipated loss of $0.40 [3]. Operational Challenges - A third-party developer partner is behind schedule in building new data center capacity, creating uncertainty regarding CoreWeave's ability to meet increasing AI demand [4]. - The company's full-year 2025 revenue guidance of $5.05 billion to $5.15 billion is below analysts' consensus of $5.3 billion, indicating caution [4]. Strategic Partnerships - CoreWeave secured significant contracts, including a $14 billion AI compute agreement with Meta, an expanded partnership with OpenAI, and a $6.3 billion deal with Nvidia for unused cloud capacity [5]. - The backlog of contracted work surged to $55.6 billion, nearly doubling from the previous quarter, although delays in data center buildout may slow revenue recognition [5]. Analyst Sentiment - DA Davidson reiterated an 'Underperform' rating with a $36 price target, citing ongoing unprofitability and projected losses of -$1.24 per share for 2025 [6]. - JPMorgan downgraded CoreWeave from 'Overweight' to 'Neutral', lowering its price target to $110 from $135, reflecting mixed signals from the quarterly results [6]. - Morgan Stanley's analyst noted that large contracts validate CoreWeave's position in the GPU market but highlighted execution challenges as a key risk [8].