CoreWeave confronts ‘doom cycle’ narrative as neocloud credit risk overshadows growth

CoreWeave is facing investor concern that rising debt and the cost of borrowing could undermine its rapid expansion of AI infrastructure. The company’s chief executive has argued that it has stronger execution, revenue, scale and software capabilities than other neocloud providers, but doubts about its ability to repay debt risk reinforcing themselves and making future funding more expensive.

CoreWeave generated $5 billion in revenue in 2025; analyst Paul Meeks estimates it could reach $42 billion in 2028, with an EBITDA margin close to 70%. Analysts expect its latest quarterly revenue to rise about 160% year on year to $3.55 billion, while Nebius is forecast to report roughly sixfold growth to $908 million. Meeks expects the results may ease concerns, but says the sector’s credit risk should not be dismissed.