When a stock falls more than 40% in just a few months, it’s natural to assume something has gone terribly wrong.

Sometimes that’s true. A collapsing share price can signal slowing demand, deteriorating fundamentals, or a broken business model. But sometimes, the business remains largely intact while investors simply become less optimistic about its future.

That’s exactly the situation investors are trying to figure out with CoreWeave‘s (CRWV +7.16%) stock. After all, many investors are wondering whether they should stay away — and take advantage of the pullback. Or pull back from the stock altogether.

The business remained intact

If investors only looked at the share price, you might assume CoreWeave had reported terrible earnings or lost major customers. Neither happened.

CoreWeave remains one of the leading providers of artificial intelligence (AI) cloud infrastructure, supplying the specialized computing power needed to train and run artificial intelligence models. As AI adoption continues to accelerate, demand for those services remains strong.

To put it into perspective, revenue more than doubled year over year from $1.9 billion to $5.1 billion in 2025. Revenue backlog even hit an all-time high of $99.4 billion in the first quarter of 2026.

The company also continues to work with some of the world’s largest AI labs — such as Meta Platforms and Anthropic — reinforcing its position as an important player in the industry’s rapidly expanding ecosystem.

In short, the business doesn’t appear fundamentally weaker than it did a few months ago.

Today’s Change

(7.16%) $6.14

Current Price

$91.90

Key Data Points

Market Cap

$50BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.

Day’s Range

$86.26 – $94.30

52wk Range

$60.55 – $153.20

Volume

33.6M

Avg Vol

29.3M

Gross Margin

34.82%

So why have investors become more cautious?

Imagine owning a restaurant that’s packed every night. Business is booming, and customers keep coming through the door.

Now imagine that every time you want to serve more customers, you have to spend millions of dollars building another restaurant. At some point, investors stop asking how many people are waiting in line. They start asking whether those expensive new locations will actually earn an attractive return.

That’s the challenge CoreWeave faces today. Unlike software companies, which can often add customers with relatively little additional cost, the AI cloud computing company must continually invest billions in GPUs, servers, networking equipment, power infrastructure, and data centers to support future growth. For perspective, it spent $15 billion in capital expenditures in just the past two quarters alone.

Those investments could generate substantial returns if AI demand continues expanding over the next decade. But they also make the business far more capital-intensive — and therefore riskier.

Adding another layer of uncertainty, technology giants such as Amazon, Microsoft, Alphabet, and Meta continue investing aggressively in AI infrastructure. Even if they don’t compete directly for every customer, their growing presence means CoreWeave will need to keep proving why customers should choose its platform over much larger rivals.

None of this means the investment thesis is broken. It simply means the market is demanding more evidence before assigning the company a premium valuation.

Should investors buy the dip?

A falling stock price doesn’t automatically make a stock a bargain. But neither does it mean the long-term opportunity has disappeared.

In CoreWeave’s case, the long-term thesis appears largely intact. AI infrastructure demand continues to grow, the company remains strategically important to a growing number of AI developers, and its addressable market is likely still enormous.

What’s changed is the level of optimism reflected in the share price. That makes today’s valuation far more interesting than it was a few weeks ago, especially for those with conviction in the company’s prospects.

If you’re looking for a stock that will deliver quick gains or move steadily higher with little drama, CoreWeave probably isn’t the right choice. The company is still in the early stages of building its business, and the stock could remain highly volatile as investors debate its long-term economics.

But if you have a long investment horizon, believe AI infrastructure will remain one of the defining growth markets of the next decade, and can tolerate significant swings along the way, this pullback looks like an opportunity.

Several major tech companies traveled to Washington, D.C. today for a meeting to review the current draft of the proposal. Attendees included Meta, Nvidia, Microsoft, OpenAI, Anthropic, and a variety of smaller companies, according to sources familiar with the matter. Fortune is first to report that Microsoft was in attendance.

The administration issued an executive order on June 2 mandating the creation of this framework within 60 days, or by August 1. The directive seeks to define which models are eligible for review, and instructs the AI labs that they have “up to 30 days” to submit them to the government prior to their public release.

The secrecy surrounding the framework may not instill public confidence in the government’s ability to vet and secure powerful AI models, especially after OpenAI confirmed its models hacked into another company, Hugging Face, last month. Anthropic later confirmed its models had done the same three times.

The fact that the process is voluntary raises questions about how the administration will enforce it. Per the executive order, the framework is not “mandatory governmental licensing, preclearance, or permitting requirement for the development, publication, release, or distribution of new AI models, including frontier models.”

Chris McGuire, Senior Fellow for China and Emerging Technologies for the Council on Foreign Relations, called the decision to keep the framework behind closed doors “baffling.”

“We can’t have secret, voluntary rules to regulate the most important tech in the world,” McGuire wrote on X. It’s unclear if the administration is operating behind closed doors for national security reasons, because it does not want input from outside researchers and experts, or for some other reason.

The U.S. government has already been working with major AI companies to review their latest model releases. In June, it effectively took Anthropic’s Mythos 5 and Fable 5 models off the market, subjecting them to export controls, and then worked with the company to fortify security before making them available. Then, the government worked closely with OpenAI ahead of its July 9 debut of GPT-5.6. On July 21, Google said it had made its 3.5 Flash Cyber model available to the government ahead of release as well.

Current discussions on Capitol Hill likely aim to formalize these engagements. It’s unclear if the framework is finalized or still in progress. In the meeting today, attendees floated the idea of a future event related to the proposal, perhaps to continue discussing it.