Parkev Tatevosian, CFA on $CRWV (Nov 8, 2026)

Shares of CoreWeave, Nebius, Iron, and Applied Digital fell by 12%, 14%, 16%, and 17 % respectively, as the results of the US midterm elections heightened investor concerns about a potential slowdown in the approval and construction of new data centers , and in the artificial intelligence sector as a whole.

And now, these stocks weren't just suffering today. They have collectively declined by approximately 50% each over the past month. So, investors are asking me: Is this a buying opportunity when the price is low, or will this event bankrupt these companies given their already large debt levels?

Therefore, I wanted to evaluate these companies, share my views on them, and find out whether I believe they are buying opportunities on a dip or stocks that investors should avoid.

You can see the price movement today for these four companies that are closely related to the artificial intelligence sector. CoreWeave, Nebius, Iron, and Applied Digital all dropped by double digits today.

In fact, all four of these companies have declined by at least 44% over the past month, with CoreWeave down 51% overall. What started the sale process in these companies, and what is worrying about them, is the large debt balance.

These companies spend a lot of money on capital expenditures and need to borrow money to finance those investments .

CoreWeave is the most indebted of these four companies, with its long-term debt exceeding $51 billion, putting it in a completely different league. CoreWeave has the worst balance sheet among these four companies, and investors are concerned that if revenues slow down, the company could become unable to repay its debts and default on its obligations.

While I have been covering these companies for the past year or more, I have been telling investors that these are among the most dangerous stocks to buy, and should only be considered by investors with a very high risk tolerance.

CoreWeave has $52 billion in long-term debt and a market capitalization of only $24 billion, more than double its long-term debt compared to its market capitalization. However, I calculated a fair value of $84 for the company.

The current market price is 44, which is significantly undervalued at current market prices after today's massive drop.

Overall, all of these stocks were rated as a buy opportunity on a dip. Moreover, I have raised all levels of my confidence in these companies. I last upgraded Coreweave stock. So, Coreweave stock, I recently upgraded it to buy on October 20th .

Thirdly, I should say that on October 14th, I upgraded it to a purchase. But I rated it as having a low level of confidence and a low level of conviction. Today, after the significant drop in the stock price, I raised my confidence level to average for Coreweave.

Therefore, I reaffirmed my buy rating and increased my conviction and confidence in the buy rating that day.