Bernstein warns of AI slowdown, names CoreWeave as clear loser with Underperform rating and $74 price target
Bernstein analysts issued a warning about a potential AI slowdown, identifying cloud provider CoreWeave Inc. (CRWV) as the stock most vulnerable. CoreWeave shares fell about 8% on September 14, closing down 6.75% at $82.98. Bernstein rates CoreWeave Underperform with a $74 price target, citing its significant exposure to rural Tier 3 and Tier 4 markets, which are primarily built for AI model training rather than the latency-sensitive inference work that is expected to dominate future demand. The firm noted that 25% of CoreWeave's active U.S. power and 74% of its contracted but not yet active power are in these markets. The warning follows Anthropic CEO Dario Amodei's essay calling for a slower pace in AI model development, a sentiment echoed by OpenAI CEO Sam Altman and Elon Musk, which unsettled a market that had priced in years of uninterrupted AI spending.
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