CoreWeave, an AI-powered cloud computing company, reported a second-quarter revenue increase of 207% year-over-year, surpassing market estimates amid strong demand driven by the AI boom. Despite this robust revenue growth, the company's shares have declined sharply, falling as much as 33% since the earnings announcement. The stock price drop is attributed to wider-than-expected losses and increased costs related to AI development and rapid scaling efforts. Analysts have expressed concerns about CoreWeave's financial health, citing growing losses and high debt levels. Additionally, the company’s cautious guidance, complicated by the divestiture of its defense laser business which impacted guidance by $20 million, has contributed to investor skepticism. Despite the recent selloff, CoreWeave shares remain up nearly 150% since mid-June, and some investors, including Cathie Wood, have taken the opportunity to buy shares during the dip. The company is also approaching a lockup expiration, which may influence stock volatility. Overall, while CoreWeave continues to benefit from the AI demand surge, its profitability challenges and capital expenditure expectations have tempered investor enthusiasm.