Core View on CoreWeave Inc. - Kerrisdale Capital has established a short position against CoreWeave Inc., describing it as a "debt fueled GPU rental business with no moat" and projecting a price target that suggests a 90% downside from its current valuation [1][2] Financial Performance and Valuation - Kerrisdale estimates CoreWeave's fair value at approximately $10 per share, indicating that the company's explosive growth is driven by hype rather than sustainable innovation [2][3] - The report criticizes CoreWeave for generating returns below its cost of capital, which is detrimental to shareholder value [3] Customer Concentration and Financial Risks - CoreWeave's financial model is described as fragile, heavily reliant on expensive asset-backed debt with interest rates ranging from 11% to 15% [5] - The company is projected to deplete $19 billion in cash by 2025 and faces significant risks due to extreme customer concentration, with Microsoft accounting for 70% of its revenue [5][6] Partnership with Nvidia - CoreWeave's close partnership with Nvidia is under scrutiny, as Nvidia acts as both an investor and a major customer, contributing to 15% of CoreWeave's total revenue in 2023 [4] - Critics argue that this "round-trip arrangement" raises concerns about inflated valuations and the sustainability of CoreWeave's business model [4][6] Market Performance - CoreWeave's stock price rose by 7.60% to $120.47 per share, reflecting a 201.18% increase since its listing in March [7]

Group 1 - A surge of competition from China, particularly from DeepSeek's R1 and Alibaba's Qwen 2.1, has led to a significant sell-off of Nvidia stock, threatening to push it below $100 [1] - Alibaba Chairman Joe Tsai has raised concerns about a potential bubble in AI data center investments due to indiscriminate spending on infrastructure [2][3] - Despite the current nervousness in the market, as evidenced by a nearly 2% drop in Nvidia shares following Tsai's warning, the overall trend for Nvidia remains positive with a 2.17% increase over the week [5] Group 2 - The Stargate Project, a major infrastructure initiative announced by President Donald Trump, is part of the broader trend of aggressive AI development, with Alibaba also heavily investing in this area [4] - Even if a bubble in AI infrastructure exists, the long-term prospects for the AI sector are expected to remain strong, similar to the growth of the internet post-Dot-com bubble [6] - The potential deflation of an AI infrastructure bubble could lead to significant short-term losses for many investors [7]