AI Stocks Remain Fragile Amid Debt Concerns; Nvidia CEO Downplays Fears for CoreWeave

AI-related stocks continued to show fragility on Friday, with cloud-computing provider CoreWeave's shares trading down in premarket. Concerns persist regarding the sustainability of the data-center boom, particularly for newer players like CoreWeave, which carries approximately $50 billion in debt. Nvidia CEO Jensen Huang, whose company is a significant investor in CoreWeave, sought to alleviate fears, stating that CoreWeave's financial strength is improving and its cost of capital is decreasing. This follows a broader global rout in AI stocks driven by investor doubts about whether future revenue from the technology can justify the substantial investment and associated borrowing costs.