NYU finance professor and “Dean of Valuation” Aswath Damodaran has sounded the alarm on CoreWeave (CRWV), cautioning investors not to get swept up by hype surrounding AI and GPU partner Nvidia. In a recent interview, Damodaran questioned CoreWeave’s soaring valuation, saying the usual buzzwords like “AI” and partnerships with tech giants like Nvidia “aren’t working anymore” to justify sky-high numbers.
CoreWeave, a cloud computing startup specializing in high-performance infrastructure for AI workloads, has rapidly risen in prominence due to the generative AI wave. However, Damodaran emphasized that investors must focus on business fundamentals—revenues, margins, and realistic market capture—rather than speculative narratives of AI dominance.
He compared CoreWeave’s current trajectory to past tech bubbles where enthusiasm overshadowed financial grounding. While acknowledging the company’s strategic positioning in a growing sector, Damodaran warned that excitement over Nvidia’s support or the AI label doesn’t replace due diligence. In essence, amid an overheating market, now is the time for clear-eyed valuation, not speculative hype.
His candid analysis is a wake-up call to investors caught in the AI craze, suggesting it’s time to separate real innovation from financial fiction.
