Wall Street giants collectively "extinguish the fire" for CoreWeave, with Barclays, Goldman Sachs, and JPMorgan Chase all believing that market concerns about the AI capital expenditure cycle are overblown.

Previously, CoreWeave's unsecured bond yields surged to approximately 15%, CDS spreads exceeded 1000 basis points, and its stock price fell over 24% in a single week, sparking systemic concerns in the market about the entire AI capital expenditure cycle. In response, Ajay Rajadhyaksha, Head of Global Macro Research at Barclays, noted in an October 19 report that CoreWeave's approximately $1.5 billion in unsecured bonds represent only a tiny fraction of its total debt of about $35 billion. He stated that using the price signal of this instrument to negate the entire AI cycle is akin to predicting a US economic recession in 2023 based on the $4 billion KRE regional bank ETF. Goldman Sachs believes the market is using the wrong reference frame, arguing that the unsecured bond market does not reflect CoreWeave's true marginal cost of funding, and upgraded its rating to "Buy" with a target price of $106. JPMorgan Chase, meanwhile, stated that current risks are manageable, with banks' primary exposure to CoreWeave concentrated in secured SPV structures, and direct holdings of unsecured bonds being limited.