CoreWeave stock sinks in premarket trading as AI financing worries linger

CoreWeave ( CRWV ) stock fell 5% in premarket trading Friday as concerns over AI funding continued to weigh on investor sentiment.

The decline comes after CoreWeave stock rebounded from a 7% drop on Thursday, following comments from ( NVDA ) CEO Jensen Huang that helped ease concerns over the company's debt-heavy balance sheet.

"CoreWeave's strength is improving every day," Huang shared at a Bloomberg event in Stockholm. "I'm optimistic. Their cost of capital is actually decreasing."

A viral chart showing CoreWeave's spiking bond yields earlier this week underscored concerns about the company's debt-heavy balance sheet and whether it can scale its business quickly enough to cover rising interest expenses.

Nvidia's backing is significant , given that the AI chip giant holds roughly 47.2 million shares of CoreWeave, representing about a 10% stake in the company.

CoreWeave is also a major customer of Nvidia's chips, underscoring the close ties between the two companies.

CoreWeave was on track to finish the week down 15% as of Thursday's close, following a volatile stretch.

Meanwhile, peer Nebius ( NBIS ) fell 3% in premarket trading, putting it on course for weekly losses as well.

Ines Ferre is a senior business reporter for Yahoo Finance.