CoreWeave IPO Slumps After Downsized Offering Amid Tech Selloff

CoreWeave, an Nvidia-backed AI cloud computing company, faced a disappointing IPO debut, selling shares at $40 each compared to an initial expectation of $47-$55. The Nasdaq index experienced a significant decline, dropping nearly 9% over the week, impacting investor sentiment and contributing to the tepid response to CoreWeave's offering. Despite raising $1.5 billion, the company ended with a market cap of only $18 billion, falling short of initial valuation hopes of over $35 billion. Nvidia's $250 million investment helped anchor the IPO, but overall market skepticism about AI stocks looms large. The weak demand raises questions about the future performance of CoreWeave amidst a cooling AI stock frenzy and economic uncertainty. Analysts suggest that the tight allocation of shares to a few major investors could have influenced the stock's performance post-debut.