CoreWeave Inc. (NASDAQ:CRWV) stock edged lower in Thursday’s premarket session after tumbling 13.92% in the previous trading day.
The weakness followed reports that Meta Platforms Inc. (NASDAQ:META) is exploring an expansion into AI computing services, raising concerns that the tech giant could become a new competitor in the fast-growing neocloud market.
The competitive concerns extended across the sector. Nebius Group N.V. (NASDAQ:NBIS) stock fell 17.01% in Wednesday’s session as investors reassessed the outlook for neocloud providers.
While the Meta report sparked concerns about future competition, not all Wall Street analysts believe the sell-off is justified. Some argue that demand for AI computing remains strong and that CoreWeave’s competitive position has not materially changed.
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