CoreWeave gains 3.4% after Goldman upgrade

CoreWeave rose 3.4% on October 19 after Goldman Sachs upgraded the AI cloud company to buy from neutral, ETMarkets.com reported in a news article citing Reuters.

The October 19 news article said the rebound followed a drop of more than 25% in CoreWeave last week and an 11% fall in the Philadelphia Semiconductor Index. The move put AI infrastructure shares back under scrutiny as investors weigh debt, valuations and the path of US interest rates.

Goldman Sachs cited tight computing capacity and CoreWeave’s performance advantage over rival neocloud firms, according to the article. Neocloud firms rent AI-focused computing power. The bank said those factors could support higher recurring sales from each megawatt of capacity over the next two years.

Broader chip shares also recovered. The Philadelphia Semiconductor Index rose 2.8%, putting it on course to end an eight-session losing streak, the longest since October 2008, according to the article. It had shed around $2 trillion in market value during that run.

“We believe it is too early to see any meaningful impact from higher rates. Also, we expect AI capex to continue to strengthen into 2027,” Ohsung Kwon, chief equity strategist at Wells Fargo, told Reuters. Capex means capital expenditure, or company spending on long-term assets such as computing capacity.

Intel jumped 5.6% after JPMorgan upgraded the stock to neutral from underweight, the article said. The brokerage pointed to rising agentic AI workloads, applications designed to perform multi-step tasks, and tight supplies of advanced chips as possible drivers of earnings-estimate increases through 2027.

Nvidia edged up 0.6%, AMD rose 4.3% and Broadcom rose 2.2%, all after declines last week, according to the article. Micron Technology rose 3.8% after losing nearly 15% last week. Among other AI infrastructure names, Nebius Group rose 4.5%, Applied Digital jumped 9% and IREN jumped 5.7%.

CoreWeave has become a focal point for questions over how AI capacity is financed. The article said concerns about the company’s $50 billion debt load weighed on the broader AI trade last week. Atlas360 reported on October 17 that CoreWeave bond yields reached 15%, while ARK added shares during the selloff and regulatory filings showed Chief Executive Michael Intrator and linked entities sold nearly $1 billion of stock, mostly through prearranged trading plans after the March 2025 IPO.

The rebound does not settle the debate over whether AI growth can keep supporting elevated equity valuations. The article said last week’s hot inflation reading raised expectations for future Federal Reserve rate increases and added to concerns over borrowing costs for heavily indebted AI companies.

“The question this quarter isn't whether AI will continue to grow, it's whether investors are still willing to pay a premium for that growth,” Jay Woods, chief market strategist at Freedom Capital Markets, said.

The Economic Times article said Meta Platforms, Tesla and SpaceX are due to report results later this week. Lam Research, Texas Instruments and Western Digital are also scheduled to release quarterly results.

Source: news article, ETMarkets.com/The Economic Times citing Reuters, October 19, 2026